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fac90_29
Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
48 CFR Part 1, et al.
Federal Acquisition Regulations; Final Rules
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 12, 13, 14, 15, 16, 19, 20,
22, 23, 25, 27, 28, 32, 33, 36, 41, 42, 43, 44, 45, 46, 47, 49, 52,
and 53
[Federal Acquisition Circular 9029]
Federal Acquisition Regulation; Introduction of Miscellaneous
Amendments
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of interim rules.
SUMMARY: This document serves to introduce the documents which
follow and which comprise Federal Acquisition Circular (FAC) 9029.
The Federal Acquisition Regulatory Council is issuing FAC 9029
to amend the Federal Acquisition Regulation (FAR) to implement
changes in the following subject areas:
Item Subject FAR case .. Rule .. type Team leader
I..... FAR guiding principles..................... 95010....... Final........ O'Neill
II.... Electronic contracting...................... 91104....... Interim..... Loeb
III... Simplified acquisition
procedures/FACNET.......
... 94770.......
Interim..... Maykowskyj
DATES: Effective Date: July 3, 1995.
Comment Closing Date: September 1, 1995.
FOR FURTHER INFORMATION CONTACT:
The team leader whose name appears in relation to each FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC, 20405 (202) 5014755. Please cite FAC 9029
and FAR case numbers(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 9029 amends
the Federal Acquisition Regulation (FAR) as specified below:
For the actual revisions and/or amendments to these FAR cases,
refer to the specific item number and subject set forth in the
documents following these item summaries.
Item IFAR Guiding Principles (FAR Case 95010)
This final rule amends the FAR at 1.102 to incorporate the
Statement of Guiding Principles for the FAR as agreed to by the FAR
Council.
Item IIElectronic Contracting (FAR Case 91104)
This interim rule amends the FAR to address the use of electronic
commerce/electronic data interchange in Government contracting. This
rule is intended to remove any barriers that existed in the FAR to use
of electronic contracting/electronic data interchange.
Item IIISimplified Acquisition Procedures/FACNET (FAR
Case 94770)
This interim rule implements the simplified acquisition and
Federal Acquisition Computer Network (FACNET) requirements of the
Federal Acquisition Streamlining Act (the Act). The Act defines the
simplified acquisition threshold as $100,000. However, the FAR and the
Act limit the use of simplified acquisition procedures by procurement
activities not having certified interim FACNET to procurements not
exceeding $50,000.
FACNET is a universal electronic capability that will permit
potential contractors to, as a minimum, obtain information on proposed
procurements, submit responses, query the system, and receive awards
on a Governmentwide basis.
The reader should note the key features represented in FAR case
94770 which will change the acquisition process significantly upon
implementation and continue to do so as contracting offices/activities
and agencies begin to certify and implement the use of FACNET. These
key features are: the small purchase limitation of $25,000 becomes the
simplified acquisition threshold of $100,000 (see 13.101); use of the
simplified acquisition procedures is tied to FACNETsimplified
acquisition procedures may be used up to $50,000 upon FAR
implementation without FACNET and up to $100,000 upon interim FACNET
certification (see 13.103(b)); for nonFACNET acquisitions over
$25,000, a synopsis for 15 days is still required; solicitation
response time must provide a reasonable amount of time to afford
potential offerors a reasonable opportunity to respond; the regulation
exempts simplified acquisition procedures from 15 statutes and from
certain provisions and clauses; contracting officers need to add any
necessary clauses to the back of the purchase order form; and all
purchases between $2,500 and $100,000 are reserved for small business
(see 19.5022).
In addition to what the Act provided, the SAT/FACNET Team has
incorporated coverage that provides flexibility and latitude that
encourages the contracting officer to use innovative approaches in
awarding contracts, seek the ``best value'' for the Government which
includes past performance and quality; permits use of other than fixed
price orders/contracts, when authorized by the agency; encourages the
use of options; and increases the property clause threshold to be
commensurate with the implementation and certification of FACNET.
The most significant change in this rule is the implementation of
FACNET which is addressed primarily in Subpart 4.5. FACNET will
provide the capability of existing computer hardware and software to
perform certain functions in a standard manner in order to provide one
face to industry for the entire Government. FACNET is the preferred
means for conducting all purchases under the simplified acquisition
threshold ($100,000) and above the micropurchase threshold ($2,500).
Contracting offices/activities may not conduct acquisitions using
simplified acquisition procedures between $50,000 and $100,000, until
they have certified and implemented interim FACNET.
However, it is also significant to highlight what requirements did
not change with FASA, such as the compliance with Part 8, required
sources of supply; the policy on not splitting orders; requirement for
posting $10,000 ($5,000 DOD); the need to synopsize over $25,000; the
requirement for small business setasides; and contracting
reporting.
Dated: June 26, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.
Federal Acquisition Circular
Number 9029
Federal Acquisition Circular (FAC) 9029 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 9029 is effective
July 3, 1995.
Dated: June 23, 1995.
Roland A. Hassebrock,
Col., USAF Director, Defense Procurement (Acting).
Dated: June 16, 1995.
Ida M. Ustad,
Associate Administrator for Acquisition Policy General Services
Administration.
Dated: June 9, 1995.
Thomas S. Luedtke,
Deputy Associate Administrator for Procurement NASA.
[FR Doc. 9516079 Filed 63095; 8:45 am]
BILLING CODE 6820EPM
[Federal Register: July 3, 1995 (Volume 60, Number 127)]
[Rules and Regulations]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16, 19, 20, 25, 28, 32,
36, 45, 52, and 53
[FAC 9029; FAR Case 91104; Item II]
RIN 9000AE46
Federal Acquisition Regulation; Electronic Contracting
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comment.
SUMMARY: The Federal Acquisition Regulatory Council (FARC) is issuing
an interim rule to amend the Federal Acquisition Regulation (FAR) to
address the use of electronic commerce/electronic data interchange in
Government contracting. This regulatory action was subject to Office
of Management and Budget review under Executive Order 12866, dated
September 30, 1993.
DATES: Effective Date: July 3, 1995.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before September 1, 1995 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets, NW, Room 4037, Attn: Ms. Beverly Fayson, Washington, DC
20405. Please cite FAC 9029, FAR case 91104 in all correspondence
related to this case.
FOR FURTHER INFORMATION CONTACT:
Mr. Edward Loeb at (202) 5014547 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 5014755. Please cite FAC 9029
(FAR Case 91104).
SUPPLEMENTARY INFORMATION:
A. Background
A proposed rule was published in the Federal Register at 58 FR
69588, December 30, 1993. The rule proposed amendments to the FAR to
remove any barriers to the use of electronic data interchange in
Government contracting. Thirtysix comments from ten respondents were
received during the public comment period. After evaluating the public
comments, another proposed rule was published because significant
changes to the rule published on December 30, 1993, were deemed to be
necessary.
A revised proposed rule was published in the Federal Register at
60 FR 12384, March 6, 1995. Eighteen comments were received in
response to the proposed rule.
This interim rule and the interim rule published elsewhere in this
issue under FAR case 94770, Simplified Acquisition
Procedures/FACENET, are interdependent and are meant to be considered
jointly.
B. Regulatory Flexibility Act
This interim rule is expected to 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 it
encourages broader use of electronic contracting, thereby improving
industry access to Federal contracting opportunities. The
implementation of Electronic Contracting and use of the Federal
Acquisition Computer Network (FACENET) will provide for electronic
exchange of acquisition information between the private sector and the
Federal Government that will increase the opportunities for vendors
currently doing business with the Government, particularly small
businesses. It is recognized that an initial startup cost will be
incurred for the purchase of a personal computer, modem, software, and
telephone lines, estimated to be $1,500. Additionally, it is
anticipated that most small businesses will subscribe to third party
value added network (VAN) services to facilitate their communications
with the Government's computers. The cost of an advance subscription
ranges from approximately $30 to $100 per month, depending on the type
of services obtained. The interim rule does not duplicate, overlap, or
conflict with any other Federal rules. An Initial Regulatory
Flexibility Analysis (IRFA) has been prepared and may be obtained from
the FAR Secretariat. A copy of the IRFA will be submitted to the Chief
Counsel for Advocacy of the Small Business Administration. Comments
are invited from small businesses and other interested parties.
Comments from small entities concerning the affected FAR parts will
also be considered in accordance with 5 U.S.C. 610. Such comments must
be submitted separately and should cite 5 U.S.C. 601, et seq. (FAR
case 91104) in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the interim
rule does not impose any information collection requirements which
require the approval of the Office of Management and Budget under 44
U.S.C. 3501, et seq.
D. Determination to Issue an Interim Rule
A determination has been made by the Secretary of Defense (DOD),
the Administrator of General Services (GSA), and the Administrator of
the National Aeronautics and Space Administration (NASA) under the
authority provided by section 22 of the Office of Federal Procurement
Policy Act (41 U.S.C. 418b) to issue this regulation as an interim
rule.
The Simplified Acquisition Threshold Procedures/Federal
Acquisition Computer Network (SAT/FACNET) rule (FAR Case 94770) and
the Electronic Contracting (EC) rule (FAR Case 91104) benefit
industry and Government by enhancing efficiency of contracting in an
environment of declining personnel staffing and resulting increase in
workload for contracting personnel. The rules are linked and require
simultaneous promulgation. The proposed rules were published
simultaneously in the Federal Register on March 6, 1995, with the
public comment period closing on May 5, 1995. A public meeting was
held on these rules on April 3, 1995, and no substantive comments were
presented at the meeting.
Section 22 of the Office of Federal Procurement Policy Act permits
issuance of procurement policies, regulations, procedures, or forms as
interim rules prior to consideration of public comments when urgent
and compelling circumstances make it impracticable to do otherwise.
Urgent and compelling reasons exist to make these rules effective
prior to full consideration of public comment. Proceeding with these
interim rules is required to permit the Federal Government to cope
with the fundamental downsizing of its acquisition workforce and the
large endoffiscalyear workload, with diminished resources. The
Federal Acquisition Streamlining Act of 1994 (FASA) and its provisions
on SAT/FACNET, provide relief from various burdens that affect the
Government acquisition process. For example, purchases under the new
simplified acquisition approach will become far less complex than
today. Using figures from the Department of Defense for illustrative
purposes, large purchase solicitations run 29 pages on the average
whereas nonautomated small purchases are about 12 pages in length,
and automated small purchase solicitations, used by some DoD
purchasing activities, are even less, 1 to 2 pages. The beneficial
results of implementing these FASA provisions are evidenced further by
the time saved in awarding orders under the existing small purchase
procedures as opposed to contracts above the small purchase threshold
of $25,000. The current average leadtime for awards below $25,000 is
26 days, while above $25,000 the average leadtime is 90 days for
sealed bids and 210 days for competitive negotiations. These
timeframes will be reduced further by implementation of the simplified
acquisition authority in this rule by establishing reasonable
timeframes for submission of offers for simplified acquisitions in
lieu of a rigid 30 days period. Through use of the simplified
acquisition procedures for actions not exceeding $50,000, the
leadtime for approximately 30,000 contracts per year will be reduced
to a fraction of the current leadtime. Use of electronic
commerce/electronic data interchange capabilities at procurement
activities certified to use FACNET will reduce leadtimes even further
and will increase the number of contracts affected to approximately
45,000, since FACNET users will be able to use the newly authorized
simplified acquisition threshold of $100,000 rather than only $50,000
where FACNET has not been certified. Use of electronic
commerce/electronic data interchange at a DoD test site reduced
leadtime to 11 days. Reducing the leadtime will allow the
contracting community to be more responsive in spite of the already
reduced personnel resources, focus its efforts on more complex
procurements, reduce the cost of the procurement process for both
Government and industry, and provide better service to the direct
users of the acquisition system, and ultimately to the public.
FASA called for its implementation in the FAR by October 1, 1995,
or earlier. Due to the time required to fully consider, analyze, and
document the analysis of public comments received in response to these
proposed rules, it is unlikely that the rules could be published in
the FAR, promulgated to procurement personnel and contractors, have
procurement personnel and contractors trained, and have the new rules
in use by the beginning of the last quarter of the fiscal year. It is
essential that these rules be made effective by the beginning of the
last quarter of the fiscal year because of personnel downsizing that
has already occurred and that is expected before the end of the fiscal
year. Additionally, the workload in the last quarter of the fiscal
year is the most demanding of the fiscal year. Introduction of new
procedures and processes in the middle of that quarter would be
counterproductive to efficiency and would require operations to be
suspended while retraining of the workforce is accomplished.
Therefore, the regulations in FAC 9029 must be effective no later
than July 3, 1995, to provide the Federal acquisition workforce the
labor and cost saving benefits provided by the statute, or they must
be delayed until the end of the fiscal year so as not to interfere
with acquisition operations. Immediate implementation as an interim
rule will permit time for training of the acquisition workforce and
FAR acquisition procedures to be fully operational before the final
quarter of FY 1995.
Pursuant to Public Law 98577 and FAR 1.501, public comments
received in response to these interim rules and the prior proposed
rules will be considered in formulating the final rules.
List of Subjects in 48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16,
19, 20, 25, 28, 32, 36, 45, 52, and 53
Government procurement.
Dated: June 26, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16, 19,
20, 25, 28, 32, 36, 45, 52, and 53 are amended as set forth below:
1. The authority citation for 48 CFR Parts 1, 2, 4, 5, 7, 8, 9,
12, 14, 15, 16, 19, 20, 25, 28, 32, 45, 52, and 53 continues to read
as follows:
Authority: 40 USC 486(c); 10 U.S.C. chapter 137; and 42 U.S.C.
2473(c).
PART 1FEDERAL ACQUISITION REGULATIONS SYSTEM
1.105 [Amended]
2. Section 1.105 is amended in the FAR segment column by removing
entry ``14.406'' and inserting ``14.407'' in its place.
PART 2DEFINITIONS OF WORDS AND TERMS
3. Section 2.101 is amended by adding, in alphabetical order, the
definitions ``In writing'' or written'' and signature'' or
``Signature'' or ``signed'' to read as follows:
2.101 Definitions.
* * * * *
In writing or written means any worded or numbered expression
which can be read, reproduced, and later communicated, and includes
electronically transmitted and stored information.
* * * * *
Signature or signed means the discrete, verifiable symbol of an
individual which, when affixed to a writing with the knowledge and
consent of the individual, indicates a present intention to
authenticate the writing. This includes electronic systems.
* * * * *
PART 4ADMINISTRATIVE MATTERS
4. Section 4.101 is revised to read as follows:
4.101 Contracting officer's signature.
Only contracting officers shall sign contracts on behalf of the
United States. The contracting officer's name and official title shall
be typed, stamped, or printed on the contract. The contracting officer
normally signs the contract after it has been signed by the
contractor. The contracting officer shall ensure that the signer(s)
have authority to bind the contractor (see specific requirements in
4.102 of this subpart).
4.201 [Amended]
5 & 6. Section 4.201 is amended in paragraph (a) by removing the
parenthetical ``(see 4.101(b)),''; in paragraph (b)(1) by removing the
parenthetical ``(stamped ``DUPLICATE ORIGINAL,'' see 4.101(b))''; and
in paragraph (d) by revising the parenthetical ``(see 30.401(b)) to
read ``(see 30.601(b))''.
PART 5PUBLICIZING CONTRACT ACTIONS
7. Section 5.101 is amended by adding paragraph (a)(2)(iv) to read
as follows:
5.101 Methods of disseminating information.
* * * * *
(a) * * *
(2) * * *
(iv) Electronic dissemination available to the public at the
contracting office may be used to satisfy the public display
requirement. Contracting offices utilizing electronic systems for
public posting shall periodically publicize the methods for accessing
such information.
* * * * *
8. Section 5.102(a)(4)(i) is revised to read as follows:
5.102 availability of solicitations.
(a) * * *
(4) * * *
(i) A copy of the solicitation specifications. In the case of
solicitations disseminated by electronic data interchange,
solicitations may be furnished directly to the electronic address of
the small business concern;
* * * * *
(9) Section 5.207 is amended by adding a new paragraph
(c)(2)(xvii) to read as follows:
5.207 Preparation and transmittal of synopses.
* * * * *
(c) * * *
(2) * * *
(xvii) If the solicitation will be made available to interested
parties through electronic data interchange, provide any information
necessary to obtain and respond to the solicitation electronically.
* * * * *
PART 7ACQUISITION PLANNING
7.30 [Amended]
10. Section 7.304(b)(3) is amended in the first sentence by
adding'', or electronic equivalent,'' after the word ``envelope''.
11. Section 7.306(a)(1)(i) is revised to read as follows:
7.306 Evaluation.
* * * * *
(a)(1) * * *
(i) Open the sealed cost comparison on which the cost estimate for
Government performance has been entered;
* * * * *
7.307 [Amended]
12. Section 7.307 is amended in the first sentence of paragraph
(b) by removing ``14.4078'' and inserting ``14.4088''
in its place.
PART 8REQUIRED SOURCES OF SUPPLIES AND SERVICES
13. Section 8.4052 is amended by revising the first sentence of
the introductory text to read as follows:
8.4052 Order placement.
Ordering offices may use Optional Form 347, an agencyprescribed
form, or an established electronic communications format to order
items from schedules and shall place orders directly with the
contractor within the limitations specified in each schedule. * * *
* * * * *
8.7053 [Amended]
14. Section 8.7053(a) is amended in the first sentence by
removing the word ``letter'' and inserting ``written'' in its place.
PART 9CONTRACTOR QUALIFICATIONS
9.2063 [Amended]
15. Section 9.2063(b) is amended in the first sentence by
removing ``requested copies of the solicitation'' and inserting
``expressed interest in the acquisition'' in its place.
PART 12CONTRACT DELIVERY OR PERFORMANCE
16. Section 12.103(e) is revised to read as follows:
12.103 Supplies or services.
* * * * *
(e) In invitations for bids, if the delivery schedule is based on
the date of the contract, and a bid offers delivery based on the date
the contractor receives the contract or notice of award, the
contracting officer shall evaluate the bid by adding 5 calendar days
(as representing the normal time for arrival through ordinary mail).
If the contract or notice of award will be transmitted electronically,
(1) the solicitation shall so state; and (2) the contracting officer
shall evaluate delivery schedule based on the date of contract receipt
or notice of award, by adding one working day. (The term ``working
day'' excludes weekends and U.S. Federal holidays.) If the offered
delivery date computed with mailing or transmittal time is later than
the delivery date required by the invitation for bids, the bid shall
be considered nonresponsive and rejected. If award is made, the
delivery date will be the number of days offered in the bid after the
contractor actually receives the notice of award.
PART 14SEALED BIDDING
17. Section 14.2016(e)(1) is revised to read as follows:
14.2016 Solicitation provisions.
* * * * *
(e) * * *
(1) 52.2149, Failure to Submit Bid, except when using electronic
data interchange methods not requiring solicitation mailing lists; and
* * * * *
14.2021 Bidding time.
18. Section 14.2021(b)(6) is amended by removing the word
``mailing'' and inserting ``transmittal'' in its place.
19. Section 14.2022(a)(1) is revised to read as follows:
14.2022 Telegraphic bids.
(a) * * *
(1) The date for the opening of bids will not allow bidders
sufficient time to submit bids in the prescribed format; or
* * * * *
20. Section 14.2028 is added to read as follows:
14.2028 Electronic bids.
In accordance with subpart 4.5, contracting officers may authorize
use of electronic commerce for submission of bids. If electronic bids
are authorized, the solicitation shall specify the electronic commerce
method(s) that bidders may use.
21. Section 14.2031 is revised to read as follows:
14.2031 Transmittal to prospective bidders.
Invitations for bids or presolicitation notices shall be
transmitted as specified in 14.205, and shall be provided to others in
accordance with 5.102. When a contracting office is located in the
United States, any solicitation sent to a prospective bidder located
at a foreign address shall be sent by electronic data interchange or
international air mail if security classification permits.
22. Section 14.2051(a) is revised to read as follows:
14.2051 Establishment of lists.
(a) Solicitation mailing lists shall be established by contracting
activities to assure access to adequate sources of supplies and
services. This rule need not be followed, however, when (1) the
requirements of the contracting office can be obtained through use of
simplified acquisition procedures (see part 13), (2) the requirements
are nonrecurring, or (3) electronic commerce methods are used which
transmit solicitations or presolicitation notices automatically to all
interested sources participating in electronic contracting with the
purchasing activity. Lists may be established as a central list for
use by all contracting offices within the contracting activity, or as
local lists maintained by each contracting office.
* * * * *
23. Section 14.209(b) is amended by adding a second sentence to
read as follows:
14.209 Cancellation of invitations before opening.
* * * * *
(b) * * * For bids received electronically, the data received
shall not be viewed and shall be purged from primary and backup data
storage systems.
* * * * *
24. Section 14.301 is amended by adding paragraph (e) to read as
follows:
14.301 Responsiveness of bids.
* * * * *
(e) Bids submitted by electronic commerce shall be considered only
if the electronic commerce method was specifically stipulated or
permitted by the solicitation.
25. Section 14.303 is amended by revising the first sentence of
paragraph (a) and adding (c) to read as follows:
14.303 Mofification or withdrawal of bids.
(a) Bids may be modified or withdrawn by any method authorized by
the solicitation, if notice is received in the office designated in
the solicitation not later than the exact time set for opening of
bids. * * *
* * * * *
(c) Upon withdrawal of an electronically transmitted bid, the data
received shall not be viewed and shall be purged from primary and
backup data storage systems.
26. Section 14.3041 is amended by removing the word ``either'' at
the end of paragraph (a) introductory text, by removing the word
``or'' at the end of paragraph (a)(2), by removing the period at the
end of paragraph (a)(3) and inserting ``; or'' in its place, and
adding paragraph (a)(4) to read as follows:
14.3041 General.
* * * * *
(a) * * *
(4) It was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of bids.
* * * * *
27. Section 14.401(a) is amended by revising the second sentence
to read as follows:
14.401 Receipt and safeguarding of bids.
(a) * * * Except as provided in paragraph (b) of this section, the
bids shall not be opened or viewed, and shall remain in a locked bid
box, a safe, or in a secured, restrictedaccess electronic bid box. *
* * * * * * *
28. Section 14.4023(a)(1) is revised to read as follows:
14.4023 Postponement of openings.
(a) * * *
(1) The contracting officer has reason to believe that the bids of
an important segment of bidders have been delayed in the mails, or in
the communications system specified for transmission of bids, for
causes beyond their control and without their fault or negligence
(e.g., flood, fire, accident, weather conditions, strikes, or
Government equipment blackout or malfunction when bids are due); or
* * * * *
14.406 through 14.4082 [Redesignated as 14.407 through 14.4092; new
14.406 added]
29. Sections 14.406 through 14.4064; 14.407 through 14.4078; and
14.408, 14.4081, and 14.4082 are redesignated as 14.407 through
14.4074; 14.408 through 14.4088; and 14.409, 14.4091, and 14.4092,
respectively, and a new section 14.406 is added to read as follows:
14.406 Receipt of an unreadable electronic bid.
If a bid received at the Government facility by electronic data
interchange is unreadable to the degree that conformance to the
essential requirements of the invitation for bids cannot be
ascertained, the contracting officer immediately shall notify the
bidder that the bid will be rejected unless the bidder provides clear
and convincing evidence
(a) Of the content of the bid as originally submitted; and
(b) That the unreadable condition of the bid was caused by
Government software or hardware error, malfunction, or other
Government mishandling.
30. Newlyredesignated section 14.4072 is amended by adding
paragraph (c) to read as follows:
14.4072 Apparent clerical mistakes.
* * * * *
(c) Correction of bids submitted by electronic data interchange
shall be effected by including in the electronic solicitation file the
original bid, the verification request, and the bid verification.
14.4071, 14.4073, 14.4074, 14.4086, and
14.4092 [Amended]
30a. In addition to the amendments set forth above, newly
redesignated sections 14.4071 through 14.4092 are amended by
updating the internal references as follows:
Section Remove Insert
14.4071............. 14.406 14.407
14.4073 intro. text..14.4063 14.4062 14.4073
14.4072
14.4073(e), (h) & (i).......................... 14.4063
14.4073
14.4074(f)..................................... 14.4064
14.4074
14.4086(c)..................................... 14.4076
14.4086
14.4092........................................ 14.4081
14.4091
PART 15CONTRACTING BY NEGOTIATION
31. Section 15.402 is amended by adding paragraph (k) to read as
follows:
15.402 General.
* * * * *
(k) In accordance with subpart 4.5, contracting officers may
authorize use of electronic commerce for submission of offers. If
electronic offers are authorized, the solicitation shall specify the
electronic commerce method(s) that offerors may use.
32. Section 15.407(d)(3) is revised to read as follows:
15.407 Solicitation provisions.
* * * * *
(d) * * *
(3) Insert in RFP's the provision at 52.21515, Failure to Submit
Offer, except when using electronic data interchange methods not
requiring solicitation mailing lists; and
* * * * *
33. Section 15.410(b) is revised to read as follows:
15.410 Amendment of solicitations before closing date.
* * * * *
(b) The contracting officer shall determine if the closing date
needs to be changed when amending a solicitation. If the time
available before closing is insufficient, prospective offerors or
quoters shall be notified by electronic data interchange, telegram, or
telephone of an extension of the closing date. Telephonic and
telegraphic notices shall be confirmed in the written amendment to the
solicitation. The contracting officer shall not award a contract
unless any amendments made to an RFP have been issued in sufficient
time to be considered by prospective offerors.
* * * * *
34. Section 15.412 is amended by revising the heading and adding
paragraph (h) to read as follows:
15.412 Late proposals, modifications, and withdrawals of proposals.
* * * * *
(h) Upon withdrawal of an electronically transmitted proposal, the
data received shall not be viewed and shall be purged from primary and
backup data storage systems.
35. Section 15.607 is amended by adding paragraph (d) to read as
follows:
15.607 Disclosure of mistakes before award.
* * * * *
(d) If a proposal received at the Government facility in
electronic format is unreadable to the degree that conformance to the
essential requirements of the solicitation cannot be ascertained from
the document, the contracting officer immediately shall notify the
offeror and provide the opportunity for the offeror to submit clear
and convincing evidence
(1) Of the content of the proposal as originally submitted; and
(2) That the unreadable condition of the proposal was caused by
Government software or hardware error, malfunction, or other
Government mishandling.
15.607, 15.608, and 15.1005 [Amended]
36. In addition to the amendments set forth above, sections
15.607, 15.608 and 15.1005 are amended by updating the internal
references as follows:
Section Remove Insert
15.607(a)....................................... 14.406
14.407
15.608(c)....................................... 14.4073
14.4083
15.1005......................................... 14.4064
14.4074
PART 16TYPES OF CONTRACTS
16.2032 [Amended]
37. Section 16.2032 is amended in the last sentence of the
introductory text by removing ``14.4074'' and inserting ``14.4084''
in its place.
38. Section 16.506(c) is revised to read as follows:
16.506 Ordering.
* * * * *
(c) Orders may be placed by electronic commerce methods when
permitted under the contract.
* * * * *
PART 19SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS
CONCERNS
19.8112 [Amended]
39. Section 19.8112 is amended in the introductory text of
paragraph (a) by removing ``14.4071(d)'' and inserting
``14.4081(d)'' in its place.
PART 20LABOR SURPLUS AREA CONCERNS
20.104 [Amended]
40. Section 20.104 is amended in paragraph (f) by removing
``14.4076'' and inserting ``14.4086'' in its place.
PART 25FOREIGN ACQUISITION
25.405 [Amended]
41. Section 25.405 is amended in paragraph (e) by removing
``14.4081(a)(2)'' and inserting ``14.4091(a)(2)''
in its place.
PART 28BONDS AND INSURANCE
28.1014 [Amended]
42. Section 28.1014 is amended in paragraph (c)(5) by removing
``14.406'' and inserting ``14.407'' in its place.
PART 32CONTRACTING FINANCING
43. Section 32.5031(b) is revised to read as follows:
32.5031 Contractor requests.
* * * * *
(b) Comply with the instructions appropriate to the applicable
form, and the contract terms; and
* * * * *
PART 36CONSTRUCTION AND ARCHITECTENGINEER CONTRACTS
36.304 [Amended]
44. Section 36.304 is amended in the introductory text by removing
``14.407'' and inserting ``14.408'' in its place.
PART 45GOVERNMENT PROPERTY
45. Section 45.6065 is amended by revising paragraphs (b)(3) and
(b)(4) to read as follows:
45.6065 Instructions for preparing and submitting schedules of
contractor inventory.
* * * * *
(b) * * *
(3) The standard inventory schedule forms may be electronically
reproduced by contractors pursuant to 53.105, provided no change is
made to the name, content or sequence of the data elements. All
essential elements of data must be included and the form must be
signed.
(4) The appropriate continuation sheet shall be used when more
space is needed.
* * * * *
PART 52SOLICITATION PROVISIONS AND CONTRACT CLAUSES
46. Section 52.2121 is amended by revising the date in the
heading of the clause and the fourth sentence in paragraph (b), and
removing ``(R 7104.92(b) 1974 APR)'', ``(R 11.3165)'' and ``(R
113164(c))'' after ``(End of clause)'' to read as
follows:
52.2121 Time of Delivery.
* * * * *
Time of Delivery (Jul 1995)
* * * * *
(b) * * * However, the Government will evaluate an offer that
proposes delivery based on the Contractor's date of receipt of the
contract or notice of award by adding (i) five calendar days for
delivery of the award through the ordinary mails, or (ii) one working
day if the solicitation states that the contract or notice of award
will be transmitted electronically. (The term ``working day'' excludes
weekends and U.S. Federal holidays.) * * *
(End of clause)
* * * * *
47. Section 52.2122 is amended by revising the date in the
heading of the clause and the fourth sentence in paragraph (b), and
removing ``(R 7104.92(c) 1974 APR)'', ``(R 11.3165(c))'' and ``(R
11.316
4(c))'' following ``(End of clause)'' to read as follows:
52.2122 Desired and Required Time of Delivery.
* * * * *
Desired and Required Time of Delivery (Jul 1995)
* * * * *
(b) * * * However, the Government will evaluate an offer that
proposes delivery based on the Contractor's date of receipt of the
contract or notice of award by adding (i) five calendar days for
delivery of the award through the ordinary mails, or (ii) one working
day if the solicitation states that the contract or notice of award
will be transmitted electronically. (The term ``working day'' excludes
weekends and U.S. Federal holidays.) * * *
(End of clause)
* * * * *
48. Section 52.2145 is amended by revising the date in the
heading of the provision and adding paragraph (d) to read as follows:
52.2145 Submission of Bids.
* * * * *
Submission of Bids (Jul 1995)
* * * * *
(d) Bids submitted by electronic commerce shall be considered only
if the electronic commerce method was specifically stipulated or
permitted by the solicitation.
49. Section 52.2147 is amended by revising the date in the
provision heading, at the end of paragraph (a)(2) by removing ``or'',
at the end of paragraph (a)(3) by removing the period and inserting
''; or'' in its place, and adding paragraph (a)(4) to read as
follows:
52.2147 Late Submissions, Modifications, and Withdrawals
of Bids.
* * * * *
Late Submissions, Modifications, and Withdrawals of Bids (Jul
1995)
(a) * * *
(4) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m., one working day prior to the date specified for
receipt of bids.
* * * * *
(End of provision)
50. Section 52.2149 is amended by revising the introductory text,
the date in the heading of the provision, and the second sentence of
the provision, and by removing ``(R SF 33A, Para 6, 1978 JAN)'' after
``(End of provision)'' to read as follows:
52.2149 Failure to Submit Bid.
As prescribed in 14.2016(e)(1), insert the following provision in
invitations for bids:
Failure to Submit Bid (Jul 1995)
* * * Instead, they should advise the issuing office by letter,
postcard, or established electronic commerce methods, whether they
want to receive future solicitations for similar requirements.*
* *
(End of provision)
51. Section 52.21423 is amended by revising the date in the
heading of the provision, at the end of paragraph (a)(3) by removing
``or''; redesignating paragraph (a)(4) as (a)(5), and adding a new
paragraph (a)(4) to read as follows:
52.21423 Late Submissions, Modifications, and Withdrawals of
Technical Proposals Under TwoStep Sealed Bidding.
* * * * *
Late Submissions, Modifications, and Withdrawals of Technical
Proposals Under TwoStep Sealed Bidding (Jul 1995)
(a) * * *
(4) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of technical proposals; or
* * * * *
52. Section 52.21432 is amended by revising the date in the
heading of the provision and paragraph (a) to read as follows:
52.21432 Late Submissions, Modifications, and Withdrawals of Bids
(Overseas).
* * * * *
Late Submissions, Modifications, and Withdrawals of Bids (Overseas)
(Jul 1995)
(a) Any bid received at the office designated in the solicitation
after the exact time specified for receipt will not be considered
unless it is received before award is made and it
(1) Was sent by mail or, if authorized by the solicitation, was
sent by telegram or via facsimile, and it is determined by the
Government that the late receipt was due solely to mishandling by the
Government after receipt at the Government installation; or
(2) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of bids. The term ``working day'' excludes weekends and U.S.
Federal holidays.
* * * * *
53. Section 52.21433 is amended by revising the date in the
heading of the provision, at the end of paragraph (a)(1) by removing
the word ``or'', redesignating paragraph (a)(2) as (a)(3), and adding
a new paragraph (a)(2) to read as follows:
52.21433 Late Submissions, Modifications, and Withdrawals of
Technical Proposals Under TwoStep Sealed Bidding (Overseas).
* * * * *
Late Submissions, Modifications, and Withdrawals of Technical
Proposals Under TwoStep Sealed Bidding (Overseas) (Jul 1995)
(a) * * *
(2) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of technical proposals. The term ``working day'' excludes
weekends and U.S. Federal holidays; or
* * * * *
54. Section 52.2159 is amended by revising the date in the
provision heading, redesignating paragraph (d) as (e), and adding a
new paragraph (d) to read as follows:
52.2159 Submission of Offers.
* * * * *
Submission of Offers (Jul 1995)
(d) Offers submitted by electronic commerce shall be considered
only if the electronic commerce method was specifically stipulated or
permitted by the solicitation.
* * * * *
55. Section 52.21510 is amended by revising the introductory text
and the date in the provision heading, at the end of (a)(3) by
removing the word ``or'', redesignating paragraph (a)(4) as (a)(5),
and adding a new paragraph (a)(4) to read as follows:
52.21510 Late Submissions, Modifications, and Withdrawals of
Proposals.
As prescribed in 15.407(c)(6), insert the following provision:
Late Submissions, Modifications, and Withdrawals of Proposals (Jul
1995)
(a) * * *
(4) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of proposals; or
* * * * *
56. Section 52.21515 is revised to read as follows:
52.21515 Failure to Submit Offer.
As prescribed in 15.407(d)(3), insert the following provision:
Failure to Submit Offer (Jul 1995)
Recipients of this solicitation not responding with an offer
should not return this solicitation, unless it specifies otherwise.
Instead, they should advise the issuing office by letter, postcard, or
established electronic commerce methods, whether they want to receive
future solicitations for similar requirements. If a recipient does not
submit an offer and does not notify the issuing office that future
solicitations are desired, the recipient's name may be removed from
the applicable mailing list.
(End of provision)
57. Section 52.21536 is amended by revising the date in the
provision heading, at the end of paragraph (a)(1) by removing the word
``or'', redesignating paragraph (a)(2) as (a)(3), and adding a new
paragraph (a)(2) to read as follows:
52.21536 Late Submissions, Modifications, and Withdrawals of
Proposals (Overseas).
* * * * *
Late Submissions, Modifications, and Withdrawals of Proposals
(Overseas) (Jul 1995)
(a) * * *
(2) Was transmitted through an electronic commerce method
authorized by the solicitation and was received by the Government not
later than 5:00 p.m. one working day prior to the date specified for
receipt of proposals; or
* * * * *
(End of provision)
52.2233 [Amended]
58. Section 52.2233, Alternate I, is amended by removing ``(NOV
1991)'' and inserting ``(JUL 1995)'' in its place, and in the second
sentence of paragraph (i)(1) by removing the word ``mail'' and
inserting ``transmit'' in its place.
59. Section 52.24212 is amended by revising the date in the
clause heading and the second and third sentences of the clause to
read as follows:
52.24212 Report of Shipment (REPSHIP).
* * * * *
Report of Shipment (Repship) (Jul 1995)
* * * The notice shall be transmitted by rapid means to be
received by the consignee transportation officer at least 24 hours
before the arrival of the shipment. The Government bill of lading,
commercial bill of lading or letter or other document that contains
all of the following shall be addressed and sent promptly to the
receiving transportation officer. * * *
* * * * *
(End of clause)
60. Section 52.24213 is amended by revising the date in the
clause and the first sentence of the clause to read as follows:
52.24213 Bankruptcy.
* * * * *
Bankruptcy (Jul 1995)
In the event the Contractor enters into proceedings relating to
bankruptcy, whether voluntary or involuntary, the Contractor agrees to
furnish, by certified mail or electronic commerce method authorized by
the contract, written notification of the bankruptcy to the
Contracting Officer responsible for administering the contract.
* * *
61. Section 52.24748 is amended by revising the introductory
text, the date in the clause heading, redesignating the introductory
text of the clause and paragraphs (a), (b), and (c) as (a)
introductory text (a)(1), (a)(2), and (a)(3), respectively, adding new
paragraph (b), and removing ``(R 7104.76 1968 JUN)'' after ``(End of
clause)'' to read as follows:
52.24748 F.o.b. DestinationEvidence of Shipment.
As prescribed in 47.3054(c), insert the following clause:
F.O.B. DestinationEvidence of Shipment (Jul 1995)
* * * * *
(b) Electronic transmission of the information required by
paragraph (a) of this clause is acceptable.
(End of clause)
PART 53FORMS
62. Section 53.105 is revised to read as follows:
53.105 Computer generation.
(a) Agencies may computergenerate the Standard and Optional Forms
prescribed in the FAR without exception approval (see 53.103),
provided
(1) The form is in an electronic format that complies with Federal
Information Processing Standard Number 161; or
(2) There is no change to the name, content, or sequence of the
data elements, and the form carries the Standard or Optional Form
number and edition date.
(b) The forms prescribed by this part may be computer generated by
the public. Unless prohibited by agency regulations, forms prescribed
by agency FAR supplements may also be computer generated by the
public. Computer generated forms shall either comply with Federal
Information Processing Standard Number 161 or shall retain the name,
content, or sequence of the data elements, and shall carry the
Standard or Optional Form or agency number and edition date (see
53.111).
53.214 [Amended]
63. Section 53.214 is amended in paragraph (a) by removing
``14.4071(d)'' and inserting ``14.4081(d)(1)'' in
its place.
[FR Doc. 9516081 Filed 63095; 8:45 am]
BILLING CODE 6820EPM
[Federal Register: July 3, 1995 (Volume 60, Number 127)]
[Rules and Regulations]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
====================================================================
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1
[FAC 9029; FAR Case 9510, Item I]
RIN 9000AG55
Federal Acquisition Regulation; FAR Guiding Principles
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
SUMMARY: The Federal Acquisition Regulatory Council agreed on a final
rule to amend the Federal Acquisition Regulation (FAR) to incorporate
the Statement of Guiding Principles. This regulatory action was not
subject to Office of Management and Budget review under Executive
Order 12866, dated September 30, 1993.
EFFECTIVE DATE: July 3, 1995.
FOR FURTHER INFORMATION CONTACT:
Mr. Jack O'Neill at 2025013856 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 5014755. Please cite FAC 9029,
FAR case 9510.
SUPPLEMENTARY INFORMATION:
A. Background
On Friday, January 20, 1995, the Office of Federal Procurement
Policy (OFPP), Office of Management and Budget, published in the
Federal Register at 60 FR 4205, a Notice of Core Guiding Principles
for the Federal Acquisition System. The OFPP, in accordance with a
decision of the FAR Rewrite Board of Directors, then requested that
the Core Guiding Principles be incorporated into the regulation. This
final rule completes the action requested by the Board of Directors.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98577, and
publication
for public comments is not required. Therefore, the Regulatory
Flexibility Act does not apply. However, comments from small entities
concerning the affected subpart will be considered in accordance with
5 U.S.C. 610. Such comments must be submitted separately and cite 5
U.S.C. 601, et seq. (FAC 9029, FAR case 9510), in
correspondence.
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 Part 1
Government procurement.
Dated: June 26, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Part 1 is amended as set forth below:
1. The authority citation for 48 CFR Part 1 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 1FEDERAL ACQUISITION REGULATIONS SYSTEM
1.1021.105 [Redesignated as 1.1031.106]
2. Subpart 1.1 is amended by redesignating sections 1.102 through
1.105 as 1.103 through 1.106 and adding new sections 1.102 through
1.024 to read as follows:
1.102 Statement of guiding principles for the federal acquisition
system.
(a) The vision for the Federal Acquisition System is to deliver on
a timely basis the best value product or service to the customer,
while maintaining the public's trust and fulfilling public policy
objectives. Participants in the acquisition process should work
together as a team and should be empowered to make decisions within
their area of responsibility.
(b) The Federal Acquisition System will
(1) Satisfy the customer in terms of cost, quality, and timeliness
of the delivered product or service by, for example
(i) Maximizing the use of commercial products and services;
(ii) Using contractors who have a track record of successful past
performance or who demonstrate a current superior ability to perform;
and
(iii) Promoting competition;
(2) Minimize administrative operating costs;
(3) Conduct business with integrity, fairness, and openness; and
(4) Fulfill public policy objectives.
(c) The Acquisition Team consists of all participants in
Government acquisition including not only representatives of the
technical, supply, and procurement communities but also the customers
they serve, and the contractors who provide the products and services.
(d) The role of each member of the Acquisition Team is to exercise
personal initiative and sound business judgment in providing the best
value product or service to meet the customer's needs. In exercising
initiative, Government members of the Acquisition Team may assume if a
specific strategy, practice, policy or procedure is in the best
interests of the Government and is not addressed in the FAR nor
prohibited by law (statute or case law), Executive order or other
regulation, that the strategy, practice, policy or procedure is a
permissible exercise of authority.
1.1021 Discussion
(a) Introduction. The statement of Guiding Principles for the
Federal Acquisition System (System) represents a concise statement
designed to be userfriendly for all participants in Government
acquisition. The following discussion of the principles is provided in
order to illuminate the meaning of the terms and phrases used. The
framework for the System includes the Guiding Principles for the
System and the supporting policies and procedures in the FAR.
(b) Vision. All participants in the System are responsible for
making acquisition decisions that deliver the best value product or
service to the customer. Best value must be viewed from a broad
perspective and is achieved by balancing the many competing interests
in the System. The result is a system which works better and costs
less.
1.1022 Performance standards.
(a) Satisfy the customer in terms of cost, quality, and timeliness
of the delivered product or service. (1) The principal customers for
the product or service provided by the System are the users and line
managers, acting on behalf of the American taxpayer.
(2) The System must be responsive and adaptive to customer needs,
concerns, and feedback. Implementation of acquisition policies and
procedures, as well as consideration of timeliness, quality and cost
throughout the process, must take into account the perspective of the
user of the product or service.
(3) When selecting contractors to provide products or perform
services the Government will use contractors who have a track record
of successful past performance or who demonstrate a current superior
ability to perform.
(4) The Government must not hesitate to communicate with the
commercial sector as early as possible in the acquisition cycle to
help the Government determine the capabilities available in the
commercial marketplace. The Government will maximize its use of
commercial products and services in meeting Government requirements.
(5) It is the policy of the System to promote competition in the
acquisition process.
(6) The System must perform in a timely, high quality, and cost
effective manner.
(7) All members of the Team are required to employ planning as an
integral part of the overall process of acquiring products or
services. Although advance planning is required, each member of the
Team must be flexible in order to accommodate changing or unforeseen
mission needs. Planning is a tool for the accomplishment of tasks, and
application of its discipline should be commensurate with the size and
nature of a given task.
(b) Minimize administrative operating costs. (1) In order to
ensure that maximum efficiency is obtained, rules, regulations, and
policies should be promulgated only when their benefits clearly exceed
the costs of their development, implementation, administration, and
enforcement. This applies to internal administrative processes,
including reviews, and to rules and procedures applied to the
contractor community.
(2) The System must provide uniformity where it contributes to
efficiency or where fairness or predictability is essential. The
System should also, however, encourage innovation, and local
adaptation where uniformity is not essential.
(c) Conduct business with integrity, fairness, and openness. (1)
An essential consideration in every aspect of the System is
maintaining the public's trust. Not only must the System have
integrity, but the actions of each member of the Team must reflect
integrity, fairness, and openness. The foundation of integrity within
the System is a competent, experienced, and welltrained, professional
workforce. Accordingly each member of the Team is responsible and
accountable for the wise use of public resources as well as acting in
a manner which maintains the public's trust. Fairness and openness
require open communication among team members, internal and external
customers, and the public.
(2) To achieve efficient operations, the System must shift its
focus from ``risk avoidance'' to one of ``risk management.'' The cost
to the taxpayer of attempting to eliminate all risk is prohibitive.
The Executive Branch will accept and manage the risk associated with
empowering local procurement officials to take independent action
based on their professional judgment.
(d) Fulfill public policy objectives. The System must support the
attainment of public policy goals adopted by the Congress and the
President. In attaining these goals, and in its overalll operations,
the process shall ensure the efficient use of public resources.
Sec. 1.1023 Acquisition team.
The purpose of defining the Federal Acquisition Team (Team) in the
Guiding Principles is to ensure that participants in the System are
identifiedbeginning with the customer and ending with the contractor
of the product or service. By identifying the team members in this
manner, teamwork, unity of purpose, and open communication among the
members of the Team in sharing the vision and achieving the goal
of
the System are encouraged. Individual team members will participate in
the acquisition process at the appropriate time.
Sec. 1.1024 Role of the acquisition team.
(a) Government members of the Team must be empowered to make
acquisition decisions within their areas of responsibility, including
selection, negotiation, and administration of contracts consistent
with the Guiding Principles. In particular, the contracting officer
must have the authority to the maximum extent practicable and
consistent with law, to determine the application of rules,
regulations, and policies, on a specific contract.
(b) The authority to make decisions and the accountability for the
decision made will be delegated to the lowest level within the System,
consistent with law.
(c) The Team must be prepared to perform the functions and duties
assigned. The Government is committed to provide training,
professional development, and other resources necessary for
maintaining and improving the knowledge, skills, and abilities for all
Government participants on the Team, both with regard to their
particular area of responsibility within the System, and their
respective role as a team member. The contractor community is
encouraged to do likewise.
(d) The System will foster cooperative relationships between the
Government and its contractors consistent with its overriding
responsibility to the taxpayers.
(e) The FAR outlines procurement policies and procedures that are
used by members of the Acquisition Team. If a policy or procedure, or
a particular strategy or practice, is in the best interest of the
Government and is not specifically addressed in the FAR, nor
prohibited by law (statute or case law), Executive order or other
regulation, Government members of the Team should not assume it is
prohibited. Rather, absence of direction should be interpreted as
permitting the Team to innovative and use sound business judgment that
is otherwise consistent with law and within the limits of their
authority.
=====================================================================
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 3, 4, 5, 6, 8, 9, 13, 15, 16, 19, 20, 22, 23, 25, 27,
28, 29, 32, 36, 41, 42, 43, 44, 45, 46, 47, 49, 52, and 53
[FAC 9029; FAR Case 94770; Item III]
RIN 9000AG18
Federal Acquisition Regulation; Simplified Acquisition
Procedures/FACNET
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comment.
SUMMARY: This interim rule is issued pursuant to the new simplified
acquisition and Federal Acquisition Computer Network (FACNET)
requirements of the Federal Acquisition Streamlining Act of 1994 (the
Act). This regulatory action was subject to Office of Management and
Budget review under Executive Order 12866 dated September 30,
1993.
DATES: Effective Date: July 3, 1995.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before September 1, 1995, to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets NW., Room 4037, Attn: Ms. Beverly Fayson, Washington, DC
20405.
Please cite FAC 9029, FAR case 94770 in all correspondence
related to this case.
FOR FURTHER INFORMATION CONTACT:
Diana Maykowskyj, Team Leader, Simplified Acquisition
Procedures/FACNET Team, on (703) 2746307 in reference to this FAR
case. For general information, contact the FAR Secretariat, Room 4037,
GS Building, Washington, DC 20405 (202) 5014755. Please cite FAC
9029, FAR Case 94770, Simplified Acquisition Procedures.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Acquisition Streamlining Act of 1994, Pub. L. 103355
(FASA), provides authorities that streamline the acquisition process
and minimize burdensome Governmentunique requirements. Major changes
in the acquisition process as a result of the Act's implementation
include the areas of commercial item acquisition, simplified
acquisition procedures, the Truth in Negotiations Act and Federal
Acquisition Computer Network (FACNET).
The terms ``simplified acquisition'' and ``Federal Acquisition
Computer Network (FACNET)'' are defined by FASA. FASA defines the
simplified acquisition threshold as $100,000. It limits use of
simplified acquisition procedures by procurement activities not having
certified Interim FACNET to procurements not exceeding $50,000. Use of
simplified acquisition procedures is also limited to procurements not
exceeding $50,000 if any agency does not have certified Full FACNET by
January 1, 2000.
Review of the law and this implementing rule requires that the
difference between the simplified acquisition threshold and the use of
simplified acquisition procedures be recognized. The simplified
acquisition threshold is $100,000. The authority to use simplified
acquisition procedures at the $100,000 level depends on implementation
and proper certification of FACNET.
This rule, the vast majority of which was published as a proposed
rule in the Federal Register at 60 FR 12366, March 6, 1995,
incorporates FAR Subpart 4.5 for FACNET information and guidance. FAR
Subpart 4.5 provides definitions, certification information, and
exemptions in accordance with FASA. FAR case 91104 (``Electronic
Commerce'') and this implementation of FASA are interdependent and are
meant to be considered jointly. Reviewers are advised that FACNET is
not a single electronic system that will be used by all executive
agencies. It is, however, a universal electronic capability that will
permit potential contractors to, at a minimum, obtain information on
proposed procurements, submit responses, query the system, and receive
awards on a governmentwide basis. Each agency will determine the
system(s) that will be used by its procuring activities so that they
can certify Interim FACNET for those activities and Full FACNET for
the agency. The Act and this rule also provide for exempting
individual procurements and procuring activities from the use of
FACNET. This becomes significant when agencies certify Full FACNET
which is based, in part, on the percentage of nonexempt transactions
which were made through FACNET during the previous fiscal year.
Implementation of FACNET includes a vendor registration
requirement for any business entity wishing to do business with the
Government electronically. Contractor information will be submitted to
the Central Contractor Registration in accordance with the Federal
implementation conventions.
There are technical requirements and other procedures with respect
to FACNET that are not appropriate for coverage in the FAR but are
needed by executive agencies to fully implement FACNET. This
information will be disseminated via other appropriate means.
Further, be advised that the micropurchase coverage that appeared
in the Federal Register on December 15, 1994, FAR case 94771 will be
merged with the SAT/FACNET coverage in the final rule. This will
incorporate all of the FASA changes under simplified acquisition
procedures.
This rule also implements section 4004 of FASA to reserve each
contract for the purchase of goods or services that have an
anticipated value greater than $2,500, but not greater than $100,000,
for exclusive small business participation unless the contracting
officer determines there is no reasonable expectation of obtaining
offers from two or more small businesses that are competitive with
market price, quality and delivery.
In implementing section 4004, the issue of the nonmanufacturer
rule arose. Existing regulations allow a small business to furnish
``any domestic end product'' under procurements setaside for small
business and utilizing small purchase procedures. Based upon
discussion with SBA's Office of Size Standards, it was determined that
this automatic waiver of the nonmanufacturers rule would not apply to
acquisitions under the simplified acquisition threshold and its
perpetuation would be in conflict with SBA's Size Regulations, which
govern this issue. Based upon this advice, the rule requires all
dealers submitting a bid or quotation on a procurement reserved for
small business to furnish the product of a small business manufacturer
unless the Small Business Administration has issued a waiver.
The reader should note the key features represented in FAR case
94770 which will change the acquisition process significantly upon
implementation and continue to do so as contracting offices/activities
and agencies begin to certify and implement the use of FACNET. These
key features are: the small purchase limitation of $25,000 becomes the
simplified acquisition threshold of $100,000 (see 13.101); use of the
simplified acquisition procedures is tied to FACNETsimplified
acquisition procedures may be used up to $50,000 upon FAR
implementation without FACNET and up to $100,000 upon interim FACNET
certification (see 13.103)(b)); for nonFACNET acquisitions over
$25,000, a synopsis for 15 days is still required; solicitation
response time must provide a reasonable amount of time to afford
potential offerors a reasonable opportunity to respond; the regulation
exempts simplified acquisition procedures from 15 statutes and from
certain provisions and clauses; contracting officers need to add any
necessary clauses to the back of the purchase order form; and all
purchases between $2,500 and $100,000 are reserved for small business
(see 19.5022).
In addition to what the Act provided, the SAT/FACNET Team has
incorporated coverage that provides flexibility and latitude that
encourages the contracting officer to use innovative approaches in
awarding contracts, seek the ``best value'' for the Government which
includes past performance and quality; permits use of other than fixed
price orders/contracts, when authorized by the agency; encourages the
use of options; and increases the property clause threshold to be
commensurate with the implementation and certification of FACNET.
The most significant change in this rule is the implementation of
FACNET which is addressed primarily in Subpart 4.5. FACNET will
provide the capability of existing computer hardware and software to
perform certain functions in a standard manner in order to provide one
face to industry for the entire Government. FACNET is the preferred
means for conducting all purchases under the simplified acquisition
threshold ($100,000) and above the micropurchase threshold ($2,500).
Contracting offices/activities may not conduct acquisitions using
simplified acquisition procedures between $50,000 and $100,000, until
they have certified and implemented interim FACNET.
However, it is also significant to highlight what requirements did
not change with FASA, such as the compliance with Part 8, required
sources of supply; the policy on not splitting orders; requirement for
posting $10,000 ($5,000 DOD); the need to synopsize over $25,000; the
requirement for small business setasides; and contracting reporting.
This interim rule and the interim rule published elsewhere in this
issue under FAR case 91104, Electronic Contracting, are
interdependent and are meant to be considered jointly.
B. Regulatory Flexibility Act
This rule is expected to 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. This interim rule is
designated to reduce the burden on entities desiring to do business
with the Government and will apply to all large and small business
entities, and all educational and nonprofit organizations who are
interested in participating in Government acquisitions. The interim
rule establishes the simplified acquisition threshold and sets forth
policies and guidance for the implementation of FACNET pursuant to the
Act. The implementation of Electronic Contracting and use of the
Federal Acquisition Computer Network (FACNET) will provide for
electronic exchange of acquisition information between the private
sector and the Federal Government that will increase the opportunities
for vendors currently doing business with the Government, particularly
small businesses. It is recognized that an initial startup cost will
be incurred for the purchase of personal computer, modem, software,
and telephone lines, estimated to be $1,500. Additionally, it is
anticipated that most small businesses will subscribe to third party
value added network (VAN) services to facilitate their communications
with the Government's computers. The cost of advance subscription
ranges from approximately $30 to $100 per month, depending on the type
of services obtained. The interim rule does not duplicate, overlap, or
conflict with any other Federal rules.
An initial Regulatory Flexibility Analysis (IRFA) in support of
the interim rule has been prepared and will be provided to the Chief
Council for Advocacy for the Small Business Administration. A copy of
the IRFA may be obtained from the FAR Secretariat. Comments from small
entities concerning the affected FAR parts will also be considered in
accordance with 5 U.S.C. 610. Such comments must be submitted
separately and cite 5 U.S.C. 601, et seq., (FAR case 94770), in
correspondence.
C. Paperwork Reduction Act
This interim rule does impose an additional reporting or
recordkeeping requirement on the public which requires the approval of
the Office of Management and Budget under 44 U.S.C. 3501, et seq.
Contractors will be required to electronically register with the
Central Contractor Registration operated by the Defense Information
Megacenter. The information to be provided is information currently
reported under several existing forms including the SF129,
Solicitation Mailing List Application, the SF3881, ACH Vendor/
Miscellaneous Payment Enrollment Form, and the DD1052, Request for
Assignment of a Commercial and Government Entity (CAGE) Code.
Contractors will also be required to provide information pertaining to
their electronic data interchange (EDI) capabilities. Establishment of
a central registration system should eliminate the need to submit
multiple registrations with each contracting office the contractor is
doing business with.
A request for approval of the information collection requirement
concerning simplified acquisition procedures was submitted to OMB and
approved through April 30, 1998, OMB Control 90000137. Public
comments concerning this request were invited through a Federal
Register notice at 60 FR 11659, March 2, 1995.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DOD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) pursuant to section 22 of the Office of Federal Procurement
Policy Act (41 U.S.C. 418b) that compelling reasons exist to
promulgate this regulation as an interim rule.
The Simplified Acquisition Threshold Procedures/Federal
Acquisition Computer Network (SAT/FACNET) rule (FAR Case 94770) and
the Electronic Contracting (EC) rule (FAR Case 91104) benefit
industry and Government by enhancing efficiency of contracting in an
environment of declining personnel staffing and resulting increase in
workload for contracting personnel. The rules are linked and require
simultaneous promulgation. The proposed rules were published
simultaneously in the Federal Register on March 6, 1995, with the
public comment period closing on May 5, 1995. A public meeting was
held on these rules on April 3, 1995, and no substantive comments were
presented at the meeting.
Section 22 of the Office of Federal Procurement Policy Act permits
issuance of procurement policies, regulations, procedures, or forms as
interim rules prior to consideration of public comments when urgent
and compelling circumstances make it impracticable to do otherwise.
Urgent and compelling reasons exist to make these rules effective
prior to full consideration of public comment. Proceeding with these
interim rules is required to permit the Federal Government to cope
with the fundamental downsizing of its acquisition workforce and the
large end of fiscal year workload with diminished resources. The
Federal Acquisition Streamlining Act of 1994 (FASA), and its
provisions on SAT/FACNET, provide relief from various burdens that
affect the Government acquisition process. For example, purchases
under the new simplified acquisition approach will become far less
complex than today. Using figures from the Department of Defense for
illustrative purposes, large purchase solicitations run 29 pages on
the average whereas nonautomated small purchases are about 12 pages
in length, and automated small purchase solicitations, used by some
DOD purchasing activities, are even less, 1 to 2 pages. The beneficial
results of implementing these FASA provisions are evidenced further by
the time saved in awarding orders under the existing small purchase
procedures as opposed to contracts above the small purchase threshold
of $25,000. The current average leadtime for awards below $25,000 is
26 days, while above $25,000 the average leadtime is 90 days for
sealed bids and 210 days for competitive negotiations. These
timeframes will be reduced further by implementation of the simplified
acquisition authority in this rule by establishing reasonable
timeframes for submission of offers for simplified acquisitions in
lieu of a rigid 30day period. Through use of the simplified
acquisition procedures for actions not exceeding $50,000, the
leadtime for approximately 30,000 contracts per year will be reduced
to a fraction of the current leadtime. Use of electronic
commerce/electronic data interchange capabilities at procurement
activities certified to use FACNET will reduce leadtimes even further
and will increase the number of contracts affected to approximately
45,000, since FACNET users will be able to use the newly authorized
simplified acquisition threshold of $100,000 rather than only $50,000
where FACNET has not been certified. Use of electronic commerce/
electronic data interchange at a DOD test site reduced leadtime to 11
days. Reducing the leadtime will allow the contracting community to
be more responsive in spite of the already reduced personnel
resources, focus its efforts on more complex procurements, reduce the
cost of the procurement process for both Government and industry, and
provide better service to the direct users of the acquisition system,
and ultimately to the public.
FASA called for its implementation in the FAR by October 1, 1995,
or earlier. Due to the time required to fully consider, analyze, and
document the analysis of public comments received in response to these
proposed rules, it is unlikely that the rules could be published in
the FAR, promulgated to procurement personnel and contractors, have
procurement personnel and contractors trained, and have the new rules
in use by the beginning of the last quarter of the fiscal year. It is
essential that these rules be made effective by the beginning of the
last quarter of the fiscal year because of personnel downsizing that
has already occurred and that is expected before the end of the fiscal
year. Additionally, the workload in the last quarter of the fiscal
year is the most demanding of the fiscal year. Introduction of new
procedures and processes in the middle of that quarter would be
counterproductive to efficiency and would require operations to be
suspended while retraining of the workforce is accomplished.
Therefore, the regulations in FAC 9029 must be effective no later
than July 3, 1995, to provide the Federal acquisition workforce the
labor and cost saving benefits provided by the statute, or they must
be delayed until the end of the fiscal year so as not to interfere
with acquisition operations. Immediate implementation as an interim
rule will permit time for training of the acquisition workforce, and
FAR acquisition procedures to be fully operational before the final
quarter of FY 1995.
Pursuant to Public Law 98577 and FAR 1.501, public comments
received in response to these interim rules and the prior proposed
rules will be considered in formulating the final rules.
List of Subjects in 48 CFR Parts 2, 3, 4, 5, 6, 8, 9, 13, 15, 16, 19,
20, 22, 23, 25, 27, 28, 29, 32, 33, 36, 41, 42, 43, 44, 45, 46, 47,
49, 52, and 53
Government procurement.
Dated: June 26, 1995.
Jeremy F. Olson,
Acting Deputy Project Manager for Implementation of the Federal
Acquisition Streamlining Act of 1994.
Therefore, 48 CFR Chapter 1 is amended as set forth below:
1. The authority citation for 48 CFR parts 2, 3, 4, 5, 6, 8, 9,
13, 15, 16, 19, 20, 23, 25, 27, 28, 29, 32, 33, 36, 41, 42, 43, 44,
45, 46, 47, 49, 52, and 53 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 2DEFINITIONS OF WORDS AND TERMS
2. Section 2.201 is revised to read as follows:
2.201 Contract clause.
The contracting officer shall insert the clause at 52.2021,
Definitions, in solicitations and contracts except when the contract
is not expected to exceed the simplified acquisition threshold in part
13. If the contract is for personal services, construction, architect
engineer services, or dismantling, demolition, or removal of
improvements, the contracting officer shall use the clause with its
Alternate I. Additional definitions may be included, provided they are
consistent with the clause and the FAR.
PART 3IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS
OF INTEREST
3.1022 [Amended]
2a. Section 3.1022 is amended by revising the phrase ``in
solicitations and contracts,'' to read ``in solicitations and
contracts exceeding the simplified acquisition threshold,''.
3. Section 3.1031 is amended by revising paragraph (a) to read as
follows:
3.1031 Solicitation provision.
* * * * *
(a) The acquisition is to be made under the simplified acquisition
procedures in part 13;
* * * * *
4. Section 3.10410 is amended by revising paragraph (c) to read
as follows:
3.10410 Solicitation provision and contract clauses.
* * * * *
(c) The contracting officer shall insert the clause at 52.20310,
Price or Fee Adjustment for Illegal for Improper Activity, in all
solicitations where the resultant contract award is expected to exceed
the simplified acquisition threshold (see part 13) and all contracts
and modifications to contracts exceeding that threshold which do not
already contain the clause when the modification is expected to exceed
that threshold.
* * * * *
5. Section 3.404 is amended by revising paragraphs (b)(1) and (c)
to read as follows:
3.404 Solicitation provision and contract clause.
* * * * *
(b) * * *
(1) The contract amount is expected to be at or below the
simplified acquisition threshold in part 13;
* * * * *
(c) The contracting officer shall insert the clause at 52.2035,
Covenant Against Contingent Fees, in solicitations and contracts
exceeding the simplified acquisition threshold in part 13.
6. Section 3.5023 is revised to read as follows:
3.5023 Contract clause.
The contracting officer shall insert the clause at 52.2037, Anti
Kickback Procedures, in solicitations and contracts exceeding the
simplified acquisition threshold in part 13.
7. Section 3.5032 is revised to read as follows:
3.5032 Contract clause.
The contracting officer shall insert the clause at 52.2036,
Restrictions on Subcontractor Sales to the Government, in
solicitations and contracts exceeding the simplified acquisition
threshold in part 13.
PART 4ADMINISTRATIVE MATTERS
4.304 [Amended]
8. Section 4.304 is amended by adding the phrase ``greater than
the simplified acquisition threshold'' at the end of the sentence.
9. Part 4 is amended by adding Subpart 4.5, consisting of sections
4.500 through 4.507, to read as follows:
Subpart 4.5Electronic Commerce in Contracting
Sec.
4.505 Scope of subpart.
4.501 Definitions.
4.502 Policy.
4.503 Contractor registration.
4.504 FACNET functions.
4.505 FACNET certification.
4.5051 Interim certification.
4.5052 Full certification.
4.5053 Governmentwide certification.
4.5054 Contract actions excluded.
4.506 Exemptions.
4.507 Contract actions using simplified acquisition procedures.
4.500 Scope of subpart.
This subpart provides policy and procedures for the establishment
and use of the Federal Acquisition Computer Network (FACNET) as
required by Section 30 of the Office of Federal Procurement Policy
(OFPP) Act (41 U.S.C. 426).
4.501 Definitions.
ANSI X.12 means the designation assigned by the American National
Standards Institute (ANSI) for the structure, format, and content of
electronic business transactions conducted through Electronic Data
Interchange (EDI). ANSI is the coordinator and clearinghouse for
national standards in the United States.
Electronic commerce (EC) means a paperless process including
electronic mail, electronic bulletin boards, electronic funds
transfer, electronic data interchange, and similar techniques for
accomplishing business transactions. The use of terms commonly
associated with paper transactions (e.g., ``copy'', ``document'',
``page'', ``printed'', ``sealed envelope'' and ``stamped'') shall not
be interpreted to restrict the use of electronic commerce.
Electronic data interchange (EDI) means a technique for
electronically transferring and string formatted information between
computers utilizing established and published formats and codes, as
authorized by the applicable Federal Information Processing Standards.
Federal Acquisition Computer Network (FACNET) means the
Governmentwide Electronic Commerce/Electronic Data Interchange
(EC/EDI) systems architecture for the acquisition of supplies and
services that provides for electronic data interchange of acquisition
information between the Government and the private sector, employs
nationally and internationally recognized data formats, and provides
universal user access.
Full FACNET means an agency has certified that it has implemented
all of the FACNET functions outlined in 4.504, and more than 75
percent of eligible contracts (not otherwise exempted from FACNET) in
amounts exceeding the micropurchase threshold, but not exceeding the
simplified acquisition threshold (see Part 13), were entered into by
the agency during the preceding fiscal year using FACNET.
Governmentwide FACNET means that the Federal Government has
certified its FACNET capability, and more than 75 percent of eligible
contracts (not otherwise exempted from FACNET) in amounts exceeding
the micropurchase threshold, but not exceeding the simplified
acquisition threshold (see part 13), entered into by the executive
agencies during the preceding fiscal year were made through full
FACNET.
Interim FACNET means a contracting office has been certified as
having implemented a capability to provide widespread public notice
of, issue solicitations, and receive responses to solicitations
and
associated requests for information through FACNET. Such capability
must allow the private sector to access notices of solicitations,
access and review solicitations, and respond to solicitations.
Transaction Set means the data that is exchanged to convey meaning
between Trading Partners engaged in EC/EDI.
ValueAdded Network (VAN) means an entity that provides
communications services, electronic mailboxing and other
communications services for EDI transmissions.
ValueAdded Service (VAS) means an entity that provides services
beyond communications to its customers. These services may range from
translation and segregation of the data to complete turnkey business
system support for customers.
4.502 Policy.
(a) The Federal Government shall use FACNET whenever practicable
or cost effective.
(b) FACNET is the preferred method of soliciting and receiving
quotes and providing notice of Government purchase requirements
exceeding the micropurchase threshold and not exceeding the
simplified acquisition threshold (see 13.103 (b)).
(c) Contracting officers may use FACNET for any contract action
governed by the FAR, unless specifically exempted (see 4.506 and
13.1061(a)(2)).
(d) Before using FACNET, or any other method of electronic data
interchange, The agency head shall ensure that the electronic data
interchange system is capable of ensuring authentication and
confidentiality commensurate with the risk and magnitude of the harm
from loss, misuse, or unauthorized access to or modification of the
information.
4.503 Contractor registration.
(a) In order for a contractor to conduct electronic commerce with
the Federal Government, the contractor must provide registration
information to the Central Contractor Registration.
(b) The contractor will be required to submit information in
accordance with the Federal implementation conventions of the ASC ANSI
X.12 transaction set for contractor registration.
4.504 FACNET functions.
(a) FACNET will permit agencies to do the following
electronically
(1) Provide widespread public notice of contracting opportunities,
and issue solicitations;
(2) Receive responses to solicitations and associated requests for
information;
(3) Provide widespread public notice of contract awards and
issuance of orders (including price);
(4) Receive questions regarding solicitations, if practicable;
(5) Issue contracts and orders, if practicable;
(6) Initiate payments to contractors, if practicable; and
(7) Archive data relating to each procurement action.
(b) FACNET will permit the private sector to do the following
electronically
(1) Access notices of solicitation;
(2) Access and review solicitations;
(3) Respond to solicitations;
(4) Receive contracts and orders, if practicable;
(5) Access information on contract awards and issuance of orders;
and
(6) Receive payment by purchase card, electronic funds transfer,
or other automated means, if practicable.
4.505 FACNET certification.
4.5051 Interim certification.
(a) A contracting office is considered to have implemented interim
FACNET if
(1) The contracting office
(i) Has implemented the FACNET functions described in 4.504(a)(1)
and (2), and (b)(1), (2), and (3); and
(ii) Issues notices of solicitations and receives responses to
solicitations in a system having those functions;
(2) The contracting office can use FACNET for contracts, not
otherwise exempted (see 4.506), that exceed the micropurchase
threshold but do not exceed the simplified acquisition threshold; and
(3) the senior procurement executive of the agency, or the Under
Secretary of Defense for Acquisition and Technology for the military
departments and defense agencies, has certified to the Administrator
of OFPP that the contracting office has implemented interim FACNET.
(b) The senior procurement executive of the agency, or the Under
Secretary of Defense for Acquisition and Technology for the military
departments and defense agencies, shall notify the private sector via
the Commerce Business Daily that a contracting office of the agency
has certified interim FACNET. The notice shall establish a date after
which it will be required that all responses to solicitations issued
by the contracting office through FACNET, must be submitted through
FACNET, unless otherwise authorized.
4.5052 Full certification.
(a) An agency is considered to have implemented full FACNET if
(1) The agency has implemented all of the FACNET functions
described in 4.504;
(2) During the entire preceding fiscal year, more than 75 percent
of the agency's eligible contracts, not otherwise exempted (see
4.506), that exceeded the micropurchase threshold but did not exceed
the simplified acquisition threshold, were entered into vai FACNET;
and.
(3) The head of the agency, with the concurrence of the
Administrator of OFPP, has certified to the Congress that the agency
has implemented full FACNET. For the Department of Defense, the
certification shall be made by the Secretary of Defense for the
Department as a whole.
(b) Eligible contracts do not include any class or classes of
contracts that the Federal Acquisition Regulatory Council determines,
after October 13, 1997, are not suitable for acquisition through
FACNET.
4.5053 Governmentwide certification.
The Federal Government is considered to have implemented
Governmentwide FACNET if
(a) During the preceding fiscal year, at least 75 percent of
eligible contracts entered into by executive agencies, that exceeded
the micropurchase threshold but did not exceed the simplified
acquisition threshold, were made via full FACNET; and
(b) the Administrator of OFPP has certified implementation of
Governmentwide FACNET to the Congress.
4.5054 Contract actions excluded.
For purposes of calculating the percentage of FACNET use referred
to in 4.5052 and 4.5053, actions issued against established
contracts, such as delivery orders, task orders, and inscope
modifications, shall not be included.
4.506 Exemptions.
The following are exempted from the use of FACNET as specified and
shall not be considered when determining compliance with the
requirements to implement FACNET:
(a) Interim FACNET. (1) Classes of procurements exempted by the
head of the contracting activity after a written determination is made
that FACNET processing of those procurements is not costeffective or
practicable; and specific purchases for which the contracting officer
determines that it is not practicable or costeffective to process via
FACNET. Such determinations shall be centrally maintained at the
contracting office.
(2) Contracts that do not require notice under subpart 5.2.
(b) Full FACNET. Contracts awarded by a contracting office (or a
portion of a contracting office), if the office is exempted from use
of FACNET by the head of the agency, or the Secretary of Defense for
the military departments and defense agencies. Any such exemption
shall be based on a written determination that FACNET processing is
not cost
effective or practicable for the contracting office, or portions
thereof. Determinations shall be maintained in the office of the
senior procurement executive, or the Under Secretary of Defense for
Acquisition and Technology for the military departments and defense
agencies.
4.507 Contract actions using simplified acquisition procedures.
Contracting officers shall refer to section 12.106 for evaluation
and documentation requirements when awarding contracts using
simplified acquisition procedures.
10. Section 4.800 is revised to read as follows:
4.800 Scope of subpart.
This subpart prescribes requirements for establishing,
maintaining, an(sic) disposing of contract files for all contractual
actions. The application of this subpart to contracts awarded using
the simplified acquisition procedures covered by part 13 is optional.
(See also documentation requirements in 12.1062.)
11. Section 4.8041 is amended by revising paragraphs (a)(1) and
(a)(2) to read as follows:
4.8041 Closeout by the office administering the contract.
(a) * * *
(1) Files for contracts using simplified acquisition procedures
should be considered closed when the contracting officer receives
evidence of receipt of property and final payment, unless otherwise
specified by agency regulations.
(2) Files for firmfixedprice contracts, other than those using
simplified acquisition procedures, should be closed within 6 months
after the date on which the contracting officer receives evidence of
physical completion.
* * * * *
12. Section 4.8042 is amended by revising paragraph (a) to read
as follows:
4.8042 Closeout of the contracting office files if another office
administers the contract.
(a) Contract files for contracts using simplified acquisition
procedures should be considered closed when the contracting officer
receives evidence of receipt of property and final payment, unless
otherwise specified by agency regulation.
* * * * *
13. Section 4.805 is amended in the table in paragraph (b) by
revising the entries in the ``Document'' column of paragraphs (b) (5),
(10), (11), and the introductory text of (b)(13) to read as follows:
4.805 Storage, handling and disposal of contract files.
* * * * *
(b) * * *
Document Retention
Period
* * * * *
(5) Unsuccessful offers or quotations that pertain to
contracts using simplified acquisition procedures.... * * *
* *
* * * * *
(10) Records or documents other than those in
paragraphs 4.805(b) (1)(9) of this section
pertaining to contracts using simplified acquisition
procedures........................................... * *
* * *
* * * * *
(11) Records or documents other than those in
paragraphs 4.805(b) (1)(10) of this section
pertaining to contracts not using simplified
acquisition procedures............................... * *
* * *
* * * * *
(13) Solicited and unsolicited unsuccessful offers and
quotations above the simplified acquisition threshold
in part 13:.......................................... * * *
* *
* * * * *
PART 5PUBLICIZING CONTRACT ACTIONS
14. Section 5.101 is amended by revising paragraphs (a)(1), (a)(2)
introductory text, and (a)(2)(ii) to read as follows:
5.101 Methods of disseminating information.
* * * * *
(a) * * *
(1) For proposed contract actions expected to exceed $25,000, by
synopsizing in the Commerce Business Daily (CBD) (see 5.201); and
(2) For proposed contract actions expected to exceed $10,000
($5,000 for Defense activities), but not expected to exceed $25,000,
by displaying in a public place at the contracting office issuing the
solicitation, an unclassified notice of the solicitation or a
copy of
the solicitation satisfying the requirements of 5.207 (c) and (f). The
notice shall include a statement that all responsible sources may
submit a quotation which, if timely received, shall be considered by
the agency. Such information shall be posted not later than the date
the solicitation is issued, and shall remain posted for at least 10
days or until after quotations have been opened, whichever is later.
* * * * *
(ii) The contracting officer need not comply with the display
requirements of this section when the exemptions at 5.202(a)(1), (5)
through (9), or (11) apply, or when oral or FACNET solicitations are
used. The exemption from display requirements does not relieve the
contracting officer from the responsibility to consider all quotations
timely received from responsible sources.
* * * * *
15. Section 5.202 is amended by removing ``or'' at the end of
(a)(11) and the period at the end of (a)(12) and inserting a semicolon
in its place; and adding paragraphs (a)(13) and (a)(14) to read as
follows:
5.202 Exceptions.
* * * * *
(a) * * *
(13) The contract action is for an amount expected to exceed
$25,000 but not expected to exceed the simplified acquisition
threshold and is made by a contracting activity that has been
certified as having implemented a system with interim (until December
31, 1999) or full (after December 31, 1999) FACNET and the contract
action will be made through FACNET; or
(14) The contract action is for an amount at or below $250,000 and
is made through certified FACNET after Governmentwide FACNET has been
certified. This exception does not apply when the contract action is
not made through certified FACNET (see subpart 4.5).
* * * * *
16. Section 5.203 is amended by redesignating paragraphs (b)
through (f) as (c) through (g), adding a new paragraph (b) and
revising newly designated (c), (d), and (e) to read as follows:
5.203 Publicizing and response time.
* * * * *
(b) The contracting officer shall establish a solicitation
response time which will afford potential offerors a reasonable
opportunity to respond for each contract action, including actions via
FACNET, in an amount estimated to be greater than $25,000, but not
greater than the simplified acquisition threshold. The contracting
officer should consider the circumstances of the individual
procurement, such as the complexity, commerciality, availability, and
urgency, when establishing the solicitation response time.
(c) Agencies shall allow at least a 30 day response time for
receipt of bids or proposals from the date of issuance of a
solicitation if the contract action is expected to exceed the
simplified acquisition threshold.
(d) Agencies shall allow at least a 30 day response time from the
date of publication of a proper notice of intent to contract for
architectengineer services or before issuance of an order under a
basic ordering agreement or similar arrangement if the contract action
is expected to exceed the simplified acquisition threshold.
(e) Agencies shall allow at least a 45 day response time for
receipt of bids or proposals from the date of publication of the
notice required in 5.201 for contract actions categorized as research
and development if the contract action is expected to exceed the
simplified acquisition threshold.
* * * * *
17. Section 5.205 is amended by revising paragraph (d)(1) to read
as follows:
5.205 Special situations.
* * * * *
(d) * * *
(1) Except when exempted by 5.202, contracting officers shall
synopsize each proposed contract action for which the total fee
(including phases and options) is expected to exceed $25,000.
Reference shall be made to the appropriate CBD Numbered Note.
* * * * *
18. Section 5.207 is amended by redesignating paragraphs
(c)(2)(xi) through (c)(2)(xv) as (c)(2)(xii) through (c)(2)(xvi),
adding new paragraph (c)(2)(xi), and revising newly redesignated
(c)(2)(xiv) to read as follows:
5.207 Preparation and transmittal of synopses.
* * * * *
(c) * * *
(2) * * *
(xi) For a contract action in an amount estimated to be greater
than $25,000 but not greater than the simplified acquisition
threshold, enter (A) a description of the procedures to be used in
awarding the contract (e.g., request for oral or written quotation or
solicitation), and (B) the anticipated award date.
* * * * *
(xiv) In the case of noncompetitive contract actions, insert a
statement of the reason justifying other than full and open
competition, and identify the intended source(s) (see 5.207(e)(3)).
* * * * *
19. Section 5.301 is amended by removing ``or'' after (b)(5);
removing the period at the end of (b)(6) and inserting ``; or'' in its
place; and adding a new (b)(7) to read as follows:
5.301 General.
* * * * *
(b) * * *
(7) The contract action is for an amount greater than $25,000 but
not greater than the simplified acquisition threshold, the contract
action is made by a contracting office that has been certified as
having implemented a system with interim (until December 31, 1999) or
full (after December 31, 1999) FACNET, and the contract action has
been made through FACNET.
* * * * *
20. Section 5.303 is amended by revising the introductory text of
paragraph (b) to read as follows:
5.303 Announcement of contract awards.
* * * * *
(b) Local announcement. Agencies may also release information on
contract awards to the local press or other media. When local
announcements are made for contract awards in excess of the simplified
acquisition threshold in part 13, they shall include
* * * * *
21. Section 5.503 is amended by revising paragraph (c)(1) to read
as follows:
5.503 Procedures.
* * * * *
(c) Forms. (1) When contracting directly with the media for
advertising, contracting officers
(i) Shall use Standard Form 26, Award/Contract, or Standard Form
1447, Solicitation/Contract, when the dollar amount of the acquisition
exceeds the simplified acquisition threshold; or
(ii) May use Optional Form 347, Order for Supplies or Services, or
an approved agency form, when the dollar amount of the acquisition
does not exceed the threshold for use of simplified acquisition
procedures (see part 13).
* * * * *
PART 6COMPETITION REQUIREMENTS
22. Section 6.001 is amended by revising paragraph (a) to read as
follows:
6.001 Applicability.
* * * * *
(a) Contracts awarded using the simplified acquisition procedures
of part 13;
* * * * *
PART 8REQUIRED SOURCES OF SUPPLIES AND SERVICES
23. Section 8.2031 is amended by revising paragraph (a)(1) to
read as follows:
8.2031 Contract clause and solicitation provision.
(a) * * *
(1) Contract actions not exceeding the simplified acquisition
threshold in part 13;
* * * * *
24. Section 8.404 is amended by revising the last sentence of
paragraph (a) to read as follows:
8.404 Using schedules.
(a) * * * When placing orders under a Federal Supply Schedule,
ordering activities need not seek further competition, synopsize the
requirement, make a separate determination of fair and reasonable
pricing, or consider small business setasides in accordance with
subpart 19.5.
* * * * *
PART 9CONTRACTOR QUALIFICATIONS
25. Section 9.4052 is amended by revising the second sentence of
paragraph (b) introductory text to read as follows:
9.4052 Restrictions on subcontracting.
* * * * *
(b) * * * Contractors shall not enter into any subcontract in
excess of $25,000 with a contractor that has been debarred, suspended,
or proposed for debarment unless there is a compelling reason to do
so. * * *
* * * * *
26. Section 9.409 is revised to read as follows:
9.409 Solicitation provision and contract clause.
(a) The contracting officer shall insert the provision at
52.2095, Certification Regarding Debarment, Suspension, Proposed
Debarment, and Other Responsibility Matters, in solicitations
where
the contract value is expected to exceed the simplified acquisition
threshold.
(b) The contracting officer shall insert the clause at 52.2096,
Protecting the Government's Interests when Subcontracting with
Contractors Debarred, Suspended, or Proposed for Debarment, in
solicitations and contracts where the contract value exceeds $25,000.
27. Section 9.5071 is amended by revising paragraph (c) to read
as follows:
9.5071 Solicitation provisions.
* * * * *
(c) The contracting officer shall insert the provision at
52.2098, Organizational Conflicts of Interest CertificateAdvisory
and Assistance Services, in solicitations for advisory and assistance
services if the contract is expected to exceed the simplified
acquisition threshold.
* * * * *
PART 13SIMPLIFIED ACQUISITION PROCEDURES
27a. The heading of part 13 is revised to read as set forth above.
28. Section 13.000 is revised to read as follows:
13.000 Scope of part.
This part prescribes policies and procedures for the acquisition
of supplies and services, including construction and research and
development, the aggregate amount of which does not exceed the
simplified acquisition threshold (see 13.103(b)). See 36.6025 for
simplified procedures to be used when acquiring architectengineering
services.
29. Section 13.101 is amended by revising the definitions of
``delivery order'' and ``purchase order''; removing the definitions of
``small purchase'', and ``small purchase procedures''; and adding, in
alphabetical order, definitions for ``imprest fund'', ``simplified
acquisition procedures'', and ``simplified acquisition threshold''.
13.101 Definitions.
* * * * *
Delivery order means an order for supplies or services placed
against an established contract or with Government sources of supply.
* * * * *
Imprest fund means a cash fund of a fixed amount established by an
advance of funds, without charge to an appropriation, from an agency
finance or disbursing officer to a duly appointed cashier, for
disbursement as needed from time to time in making payment in cash for
relatively small amounts.
* * * * *
Purchase order means an offer by the Government to buy supplies or
services, including construction and research and development, upon
specified terms and conditions, using simplified acquisition
procedures.
Simplified acquisition procedures means the methods prescribed in
this part for making purchases of supplies or services using imprest
funds, purchase orders, blanket purchase agreements, Governmentwide
commercial purchase cards, or any other appropriate authorized method.
Simplified acquisition threshold means $100,000 (but see
13.103(b)). In the case of any contract to be awarded and performed,
or purchase to be made, outside the United States in support of a
contingency operation, the term means $200,000.
30. Section 13.102 is revised to read as follows:
13.102 Purpose.
The purpose of this part is to prescribe simplified acquisition
procedures in order to
(a) Reduce administrative costs;
(b) Improve opportunities for small business and small
disadvantaged business concerns to obtain a fair proportion of
Government contracts;
(c) Promote efficiency and economy in contracting; and,
(d) Avoid unnecessary burdens for agencies and contractors.
31. Section 13.103 is revised to read as follows:
13.103 Policy.
(a) Simplified acquisition procedures shall be used to the maximum
extent practicable for all purchases of supplies or services not
exceeding the simplified acquisition threshold unless requirements can
be met by using required sources of supply under part 8 (e.g., Federal
Prison Industries, Committee for Purchase from People who are Blind or
Severely Disabled, and Federal Supply Schedule contracts) or orders
under Federal Information Processing multiple award schedule
contracts.
(b) Simplified acquisition procedures may not be used for contract
actions exceeding $50,000, and not exceeding the simplified
acquisition threshold, unless the contracting office making the
purchase has been certified as having interim FACNET in accordance
with 4.5051. The contracting office shall not use simplified
acquisition procedures for contract actions exceeding $50,000 after
December 31, 1999, unless the office's cognizant agency has certified
full FACNET capability in accordance with 4.5052.
(c) Simplified acquisition procedures shall not be used in the
acquisition of supplies and services initially estimated to exceed the
simplified acquisition threshold even though resulting awards do not
exceed that threshold. Requirements aggregating more than the
simplified acquisition threshold shall not be broken down into several
purchases that are less than the threshold merely to permit use
of
simplified acquisition procedures.
(d) Simplified acquisition procedures may be used to acquire
personal services if the agency has specific statutory authority to
acquire personal services (see 37.104).
(e) FACNET is the preferred means for acquiring supplies and
services, including construction and research and development, in
amounts exceeding the micropurchase threshold but not exceeding the
simplified acquisition threshold.
(f) Contracting officers shall establish deadlines for the
submission of responses to solicitations which afford contractors a
reasonable opportunity to respond.
(g) Contracting officers are encouraged to use innovative
approaches in awarding contracts using the simplified acquisition
procedures under the authority of this part. For example, the
procedures of other FAR parts may, as appropriate, be adapted for use
in awarding contracts under this part. Other FAR parts that may be
adapted include, but are not limited to
(1) Part 14, Sealed Bidding;
(2) Part 15, Contracting by Negotiation;
(3) Part 11, Acquisition and Distribution of Commercial Products;
and
(4) Part 36, Construction and ArchitectEngineer Contracts,
including the use of Standard Form 1442, Solicitation, Offer and Award
(Construction, Alteration, or Repair), for construction contracts (see
36.701(b)).
32. Section 13.104 is revised to read as follows:
13.104 Procedures.
(a) Contracting officers shall make awards under this part in the
simplified manner that is most suitable, efficient, and economical in
the circumstances of each acquisition. Contracting officers may use
the procedures in this part in acquisitions from Government supply
sources (see part 8), if their use is authorized by the basic contract
or concurred in by the source.
(b) Related items (such as small hardware items or spare parts for
vehicles) may be included in one solicitation and the award made on an
``allornone'' basis if suppliers are so advised when quotations are
requested.
(c) Agencies shall use bulk funding to the maximum extent
practicable to reduce processing time, handling, and documentation.
Bulk funding is particularly appropriate if numerous purchases using
the same type of funds are to be made during a given period.
(d) Agencies shall inspect items or services acquired under
simplified acquisition procedures as prescribed in 46.404.
(e) Agencies shall use United Statesowned foreign currency, if
appropriate, in making payments when using simplified acquisition
procedures (see subpart 25.3).
(f) For proposed purchases covered by this part, see 5.101 for
public display and synopsis requirements.
(g) When a quotation, oral or written, is to be rejected because a
small business firm is determined to be nonresponsible (see subpart
9.1), see subpart 19.6 with respect to certificates of competency.
33. Section 13.105 is revised to read as follows:
13.105 Small business setasides.
(a) Except as provided in paragraphs (b) and (c) of this section,
each acquisition (nonFACNET and FACNET) of supplies or services that
has an anticipated dollar value exceeding $2,500 and not exceeding
$100,000, is reserved exclusively for small business concerns and
shall be set aside (see subpart 19.5).
(b) The requirements of this section apply only to purchases in
the United States, its territories and possessions, Puerto Rico, and
the Trust Territory of the Pacific Islands (see 19.000). Foreign
concerns shall not be solicited for acquisitions set aside for small
business concerns.
(c)(1) Each written solicitation under a setaside shall contain
the appropriate provisions or clauses prescribed by Part 19. If the
solicitation is oral, however, information substantially identical to
that which is in the provision or clause shall be given to potential
quoters.
(2) If the contracting officer determines there is no reasonable
expectation of obtaining quotations from two or more responsible small
business concerns that will be competitive in terms of market price,
quality, and delivery, the contracting officer need not proceed with
the small business setaside and may purchase on an unrestricted
basis. If the SBA procurement center representative disagrees with a
contracting officer's decision not to proceed with the small business
setaside, the SBA procurement center representative may appeal the
decision in accordance with the procedures set forth in 19.505.
(3) If the contracting officer proceeds with the setaside and
receives a quotation from only one responsible small business concern
at a reasonable price (see 13.1062(a)), the contracting officer shall
make an award to that concern. However, if the contracting officer
does not receive a reasonable quotation from a responsible small
business concern, the contracting officer may cancel the setaside and
complete the purchase on an unrestricted basis.
(4) If the purchase is on an unrestricted basis under
13.105(c)(2), the contracting officer shall document in the file the
reasons for the unrestricted purchase.
(5) See part 19 for policy concerning
(i) Contracting with the Small Business Administration under the
8(a) Program (subpart 19.8);
(ii) Emerging small business setaside (19.1006(c)); and
(iii) The Small Business Competitiveness Demonstration Program
(subpart 19.10).
34. Section 13.106 text is removed and the heading is revised to
read as follows:
13.106 Purchases exceeding the micropurchase threshold.
35. Section 13.1061 is added to read as follows:
13.1061 Soliciting competition, evaluation of quotas, and
award.
(a) Soliciting competition. (1) Contracting officers shall solicit
a reasonable number of sources to promote competition to the maximum
extent practicable, and to ensure that the purchase is advantageous to
the Government, based, as appropriate, on either price alone or price
and other factors (e.g., past performance and quality) including the
administrative cost of the purchase. Requests for quotations or
solicitations shall notify suppliers of the basis upon which award is
to be made.
(2) FACNET is the preferred method of soliciting simplified
acquisitions. However, if FACNET is not available, or if the
contracting officer has made a determination that it is not
practicable or costeffective to process a specific purchase via
FACNET, or if the head of the contracting activity has made a
determination that it is not practicable or costeffective to process
a class of purchases via FACNET (see 4.506), quotations may be
solicited through other appropriate means. Requests for quotations
should be solicited orally to the maximum extent practicable for
contract actions not expected to exceed $25,000, when FACNET is not
available or a determination has been made that it is not practicable
or costeffective to purchase via FACNET. Oral solicitations may not
be practicable for most contract actions exceeding $25,000 because of
the synopsis requirement in 5.101. A synopsis may incorporate enough
information for the contracting officer to receive oral quotes. The
contracting officer is not required to issue a separate written
solicitation. Paper solicitations for contract actions not expected to
exceed $25,000 should only be issued when obtaining electronic or oral
quotations is not considered economical or practical. Solicitations
for construction contracts over $2,000 shall only be issued
electronically or by paper solicitation.
(3) When not soliciting quotations electronically, maximum
practicable competition ordinarily can be obtained without soliciting
quotations or offers from sources outside the local trade area.
Generally, solicitation of at least three sources may be considered to
promote competition to the maximum extent practicable if the contract
action does not exceed $25,000. If practicable, two sources not
included in the previous solicitation should be requested to furnish
quotations. The following factors influence the number of quotations
required in connection with any particular purchase:
(i) The nature of the article or service to be purchased and
whether it is highly competitive and readily available in several
makes or brands, or is relatively noncompetitive.
(ii) Information obtained in making recent purchases of the same
or similar item.
(iii) The urgency of the proposed purchase.
(iv) The dollar value of the proposed purchase.
(v) Past experience concerning specific dealers' prices.
(4) Contracting officers may solicit from one source if the
contracting officer determines that the circumstances of the contract
action deem only one source reasonably available (e.g., urgency).
(5) Contracting officers shall not limit solicitations to
suppliers of well known and widely distributed makes or brands, or
solicit quotations on a personal preference basis. If it is necessary
to maintain a list of sources, new supply sources disclosed through
trade journals or other media shall be continuously reviewed and, if
appropriate, added to the list.
(6) In accordance with 14.4083, contracting officers shall make
every effort to obtain trade and prompt payment discounts. However,
prompt payment discounts shall not be considered in the evaluation of
quotations.
(7)(i) Unless exempted from this requirement by the head of the
contracting activity, or unless purchases are made through FACNET,
each contracting office should maintain a source list (or lists, if
more convenient) and should record on the list the status of each
source (when the status is made known to the contracting office) in
the following categories:
(A) Small business.
(B) Small disadvantaged business.
(C) Womenowned small business.
(ii) The status information should be used to ensure that small
business concerns are given opportunities to respond to solicitations
issued using simplified acquisition procedures.
(b) Evaluation of quotes or offers. (1) Contracting officers may
evaluate quotations or offers based on price alone or price and other
factors (e.g., past performance, or quality). Formal evaluation plans,
conduct of discussions, and scoring of quotes or offers are not
required. Evaluation of other factors does not require the creation or
existence of a formal data base, but may be based on such information
as the contracting officer's knowledge, previous experience, or
customer surveys.
(2) Standing price quotations may be used in lieu of obtaining
individual quotations each time a purchase is contemplated. In such
cases, the buyer shall ensure that the price information is current
and that the Government obtains the benefit of maximum discounts
before award is made.
(3) Contracting officers shall evaluate quotations inclusive of
transportation charges from the shipping point of the supplier to the
delivery destination.
(4) Contracting officers shall comply with the policy in 7.202
relating to economic purchase quantities, when practicable.
(c) Award. (1) Occassionally an item can be obtained only from a
supplier who quotes a minimum order price or quantity that either
unreasonably exceeds stated quantity requirements or results in an
unreasonable price for the quantities required. In these instances,
the contracting officer should inform the requiring activity of all
facts regarding the quotation and ask it to confirm or alter its
requirement. The file shall be documented to support the final action
taken.
(2) Notification to unsuccessful suppliers shall be given only if
requested. When a supplier requests information on an award which was
based on factors other than price alone, the notification shall
include a brief explanation of the basis for the contract award
decision. (See 15.1001(c)(3).)
36. Section 13.1062 is added to read as follows:
13.1062 Data to support purchases.
(a) The determination that a proposed price is reasonable should
be based on competitive quotations. If only one response is received,
or the price variance between multiple responses reflects lack of
adequate competition, a statement shall be included in the contract
file giving the basis of the determination of fair and reasonable
price. The determination may be based on a comparison of the proposed
price with prices found reasonable on previous purchases, current
price lists, catalogs, advertisements, similar items in a related
industry, value analysis, the contracting officer's personal knowledge
of the item being purchased or any other reasonable basis.
(b) When other than price related factors are considered in
selecting the supplier (see 13.1061(b)(1)), the contracting officer
shall document the file to support the final contract award decision.
(c) If only one source is solicited, an additional notation shall
be made to explain the absence of competition, except for acquisition
of utility services available only from one source or of educational
services from nonprofit institutions.
(d) Simplified documentation practices should be used. The
following illustrate the extent to which quotation information should
be recorded.
(1) Oral solicitations. The contracting office should establish
and maintain informal records of oral price quotations in order to
reflect clearly the propriety of placing the order at the price paid
with the supplier concerned. In most cases this will consist merely of
showing the names of the suppliers contacted and the prices and other
terms and conditions quoted by each.
(2) Written solicitations (see 2.101). Written records of
solicitations may be limited to notes or abstracts to show prices,
delivery, references to printed price lists used, the supplier or
suppliers contacted, and other pertinent data.
(e) Purchasing offices shall retain data supporting purchases
using simplified acquisition procedures to the minimum extent and
duration necessary for management review purposes (see Subpart
4.8).
37. Section 13.107 is revised to read as follows:
13.107 Solicitation forms.
(a) Except when quotations are solicited via FACNET or orally,
Standard Form 18, Request for Quotations (53.30118), is available,
but not required, for use by all agencies.
(b) Optional Form 336, Continuation Sheet, may be used with
Standard Form 18 when additional space is needed.
(c) If Standard Form 18 is not used for written solicitations,
contracting officers may request quotations using an agencydesigned
form, an agencyapproved automated format, or electronically.
(d) Each agencydesigned request for quotations form shall conform
with Standard Form 18, to the maximum extent practicable.
(e) When using an unsigned electronic purchase order (see 13.506)
for transmission of a request for quotations, the provisions and
clauses applicable to the solicitation shall be incorporated by
reference.
38. Section 13.108 is revised to read as follows:
13.108 Legal effect of quotations.
(a) A quotation is not an offer and, consequently, cannot be
accepted by the Government to form a binding contract (see 15.402(e)).
Therefore, issuance by the Government of an order for supplies or
services in response to a supplier's quotation does not establish a
contract. The order is an offer by the Government to the supplier to
buy certain supplies or services upon specified terms and conditions.
A contract is established when the supplier accepts the offer or
begins performance.
(b) When appropriate, the contracting officer may ask the supplier
to indicate acceptance of an order by notification to the Government,
preferably in writing. In other circumstances, the supplier may
indicate acceptance by furnishing the supplies or services ordered or
by proceeding with the work to the point where substantial performance
has occurred.
(c) If the Government issues an order resulting from a quotation,
the Government may (by written notice to the supplier, at any time
before acceptance occurs) withdraw, amend, or cancel its offer. (See
13.504 for procedures on termination or cancellation of purchase
orders.)
38(sic). Section 13.109 is revised to read as follows:
13.109 Agency use of indefinite delivery contracts.
Cost and processing time for acquisitions at or below the
simplified acquisition threshold may be reduced through the use of
indefinite delivery contracts (see subpart 16.5) that permit delivery
orders to be placed by several contracting or ordering offices in one
or more executive agencies. Therefore, contracting offices are
encouraged to seek opportunities to cooperate with each other to
achieve efficiency and economy through the use of indefinite delivery
contracts.
40. Section 13.110 is added to read as follows:
13.110 Federal Acquisition Streamlining Act of 1994 (FASA) list of
inapplicable laws.
(a) The following laws are inapplicable to all contracts and
subcontracts (if otherwise applicable to subcontracts) at or below the
simplified acquisition threshold:
(1) 41 U.S.C. 57 (a) and (b) (AntiKickback Act of 1986). (Only
the requirement for the incorporation of the contractor procedures for
the prevention and detection of violations, and the contractual
requirement for contractor cooperation in investigations are
inapplicable.)
(2) 40 U.S.C. 27 (Miller Act).
(3) 40 U.S.C. 329 (Contract Work Hours and Safety Standards Act
Overtime Compensation).
(4) 41 U.S.C. 701(a)(1) (Section 5152 of the Drug Free Workplace
Act of 1988), except for individuals.
(5) 42 U.S.C. 6962 (Solid Waste Disposal Act) (Only the
requirement for providing the estimate of recovered material utilized
in the performance of the contract is inapplicable).
(6) 10 U.S.C. 2306(b) and 41 U.S.C. 254(a) (Contract Clause
Regarding Contingent Fees).
(7) 10 U.S.C. 2313 and 41 U.S.C. 254(c) (Authority to Examine
Books and Records of Contractors).
(8) 10 U.S.C. 2384(b) (Requirement to Identify Suppliers and
Sources of Supply).
(9) 10 U.S.C. 2393(d) (Prohibition Against Doing Business with
Certain Offerors or Contractors).
(10) 10 U.S.C. 2402 and 41 U.S.C. 253g (Prohibition on Limiting
Subcontractor Direct Sales to the United States).
(11) 10 U.S.C. 2408(a) (Prohibition on Persons Convicted of
Defense Related Felonies).
(12) 10 U.S.C. 2410b (Contractor Inventory Accounting System
Standards).
(13) 10 U.S.C. 2534 (Miscellaneous Procurement Limitations).
(b) The Federal Acquisition Regulatory Council will include any
law enacted after October 13, 1994, that sets forth policies,
procedures, requirements, or restrictions for the procurement of
property or services, on the list set forth in 13.110(a), unless the
FAR Council makes a written determination that it is in the best
interests of the Government that the enactment should apply to
contracts or subcontracts not greater than the simplified acquisition
threshold.
(c) The provisions of 13.110(b) do not apply to laws that
(1) Provide for criminal or civil penalties; or
(2) Specifically state that notwithstanding the language of
Section 4101, Pub. L. 103355, the enactment will be applicable to
contracts or subcontracts in amounts not greater than the simplified
acquisition threshold.
(d) Any individual may petition the Administrator of the Office of
Federal Procurement Policy to include any applicable provision
of law
not included on the list set forth in 13.110(a) unless the FAR Council
has already determined in writing that the law is applicable. The
Administrator of OFPP will include the law on the list in 13.110(a)
unless the FAR Council makes a determination that it is applicable
within sixty days of receiving the petition.
41. Section 13.111 is added to read as follows:
13.111 Inapplicable provisions and clauses.
Pursuant to Pub. L. 103355, the following provisions and clauses
are inapplicable to contracts and subcontracts at or below the
simplified acquisition threshold
(a) 28.1023, Miller Act requirements;
(b) 52.2031, Officials Not to Benefit;
(c) 52.2034, Contingent Fee Representation and Agreement;
(d) 52.2035, Covenant Against Contingent Fees;
(e) 52.2036, Restrictions on Subcontractor Sales to the
Government;
(f) 52.2037, AntiKickback Procedures;
(g) 52.2151, Examination of Records by Comptroller General;
(h) 52.2224, Contract Work Hours and Safety Standards Act
Overtime Compensation;
(i) 52.2235, Certification Regarding a DrugFree Workplace,
except for individuals; and
(j) 52.2236, DrugFree Workplace, except for individuals.
42. Section 13.112 is added to read as follows:
13.112 Use of options in acquisitions using simplified acquisition
procedures.
Options may be included in acquisitions using simplified
acquisition procedures provided that the requirements of subpart 17.2
are met, and that the aggregate value of the acquisition and all
options does not exceed the dollar threshold for use of simplified
acquisition procedures under this part.
43. Subpart 13.2 is revised to read as follows:
Subpart 13.2Blanket Purchase Agreements
Sec.
13.201 General.
13.202 [Reserved]
13.203 Establishment of Blanket Purchase Agreements.
13.2031 General.
13.2032 Clauses.
13.204 Purchases under Blanket Purchase Agreements.
13.205 Review procedures.
13.206 Completion of Blanket Purchase Agreements.
13.201 General.
(a) A blanket purchase agreement (BPA) is a simplified method of
filling anticipated repetitive needs for supplies or services by
establishing ``charge accounts'' with qualified sources of supply (see
subpart 16.7 for additional coverage of agreements).
(b) BPAs should be established for use by the level responsible
for providing supplies for its own operations or for other offices,
installations, projects, or functions. Such levels, for example, may
be organized supply points, separate independent or detached field
parties, or oneperson posts or activities.
(c) The use of BPAs does not exempt the agency from the
responsibility for keeping obligations and expenditures within
available funds.
13.202 [Reserved]
13.203 Establishment of Blanket Purchase Agreements.
13.2031 General.
(a) The following are circumstances under which contracting
officers may establish BPAs:
(1) If there is a wide variety of items in a broad class of goods
(e.g., hardware) that are generally purchased but the exact items,
quantities, and delivery requirements are not known in advance and may
vary considerably.
(2) If there is a need to provide commercial sources of supply for
one or more offices or projects in a given area that do not have or
need authority to purchase otherwise.
(3) In any other case in which the writing of numerous purchase
orders can be avoided through the use of this procedure.
(b) A BPA should be established without a purchase requisition.
(c) A BPA shall not cite accounting and appropriation data (see
13.204(e)(4)).
(d) BPAs should be made with firms from which numerous individual
purchases will likely be made in a given period. For example, if past
experience has shown that certain firms are dependable and
consistently lower in price than other firms dealing in the same
commodities, and if numerous purchases at or below the simplified
acquisition threshold are usually made from such suppliers, it would
be advantageous to establish BPAs with those firms.
(e) To the extent practical, BPAs for items of the same type
should be placed concurrently with more than one supplier. All
competitive sources should be given an equal opportunity to furnish
supplies or services under BPAs.
(f) BPAs may also be established with Federal Supply Schedule
contractors and Federal Information Processing Multiple Award Schedule
contractors (see part 39), if not inconsistent with the terms of the
applicable schedule contract.
(g) If it is determined that BPAs would be advantageous, suppliers
should be contacted to make the necessary arrangements for securing
maximum discounts, documenting the individual purchase transactions,
periodic billing, and other necessary details.
(h) A BPA may be limited to furnishing individual items or
commodity groups or classes, or it may be unlimited for all items or
services that the source of supply is in a position to furnish.
(i) BPAs may be prepared and issued on any agencyauthorized
purchase order form.
(j) BPAs shall contain the following terms and conditions:
(1) Description of agreement. A statement that the supplier shall
furnish supplies or services, described in general terms, if and when
requested by the contracting officer (or the authorized representative
of the contracting officer) during a specified period and within a
stipulated aggregate amount, if any.
(2) Extent of obligation. A statement that the Government is
obligated only to the extent of authorized purchases actually made
under the BPA.
(3) Pricing. A statement that the prices to the Government shall
be as low or lower than those charged the supplier's most favored
customer for comparable quantities under similar terms and conditions,
in addition to any discounts for prompt payment.
(4) Purchase limitation. A statement that specifies the dollar
limitation for each individual purchase under the BPA (see 13.204(b)).
(5) Notice of individuals authorized to purchase under the BPA. A
statement that a list of individuals authorized to purchase under the
BPA, identified either by title of position or by name of individual,
organizational component, and the dollar limitation per purchase for
each position title or individual shall be furnished to the supplier
by the contracting officer.
(6) Delivery tickets. A requirement that all shipments under the
agreement, except subscriptions and other charges for newspapers,
magazines, or other periodicals, shall be accompanied by delivery
tickets or sales slips which shall contain the following minimum
information:
(i) Name of supplier.
(ii) BPA number.
(iii) Date of purchase.
(iv) Purchase number.
(v) Itemized list of supplies or services furnished.
(vi) Quantity, unit price, and extension of each item, less
applicable discounts (unit prices and extensions need not be shown
when incompatible with the use of automated systems; provided, that
the invoice is itemized to show this information).
(vii) Date of delivery or shipment.
(7) Invoices. One of the following statements (except that the
statement in paragraph (j)(7)(iii) of this section should not be used
if the accumulation of the individual invoices by the Government
materially increases the administrative costs of this purchase
method):
(i) A summary invoice shall be submitted at least monthly or upon
expiration of this BPA, whichever occurs first, for all deliveries
made during a billing period, identifying the delivery tickets covered
therein, stating their total dollar value, and supported by receipt
copies of the delivery tickets.
(ii) An itemized invoice shall be submitted at least monthly or
upon expiration of this BPA, whichever occurs first, for all
deliveries made during a billing period and for which payments has not
been received. These invoices need not be supported by copies of
delivery tickets.
(iii) When billing procedures provide for an individual invoice
for each delivery, these invoices shall be accumulated; provided,
that
(A) A consolidated payment will be made for each specified period;
and
(B) The period of any discounts will commence on the final date of
the billing period or on the date of receipt of invoices for all
deliveries accepted during the billing period, whichever is later.
(iv) An invoice for subscriptions or other charges for newspapers,
magazines, or other periodicals shall show the starting and ending
dates and shall state either that ordered subscriptions have been
placed in effect or will be placed in effect upon receipt of payment.
(k) BPAs in which the fast payment procedure is used shall include
the requirements stated under 13.303(b).
13.2032 Clauses.
(a) The contracting officer shall insert in each BPA the clauses
prescribed elsewhere in this part that are required for or applicable
to the particular BPA.
(b) Unless a clause prescription specifies otherwise, (e.g., see
22.305(a)(1), 22.605(a)(5), or 22.1006), if the prescription includes
a dollar threshold, the amount to be compared to that threshold is
that of any particular order under the BPA.
13.204 Purchases under Blanket Purchase Agreements.
(a) The use of a BPA does not authorize purchases that are not
otherwise authorized by law or regulation. For example, the BPA, being
a method of simplifying the making of individual purchases, shall not
be used to avoid the simplified acquisition threshold.
(b) Unless otherwise specified in agency regulations, individual
purchases under BPAs, except those BPAs established in accordance with
13.2031(f), shall not exceed (i) $50,000, or (ii) $100,000 when the
contracting office has certified interim FACNET (see 13.103(b)).
(c) The existence of a BPA does not justify purchasing from only
one source or avoiding small business setasides. The requirements of
13.105 and 13.106 also apply to each order under a BPA.
(d) If there is an insufficient number of BPAs to ensure maximum
practicable competition for a particular purchase, the contracting
officer shall
(1) Solicit quotations from other sources and make the purchase as
appropriate; and
(2) Establish additional BPAs to facilitate future purchases if
(i) Recurring requirements for the same or similar items or
services seem likely,
(ii) Qualified sources are willing to accept BPAs, and
(iii) It is otherwise practical to do so.
(e) Documentation of purchases under BPAs shall be limited to
essential information and forms as follows:
(1) Purchases under BPAs generally should be made electronically,
or orally when it is not considered economical or practical to use
electronic methods.
(2) A paper purchase document may be issued if written
communications are necessary to ensure that the vendor and the
purchaser agree concerning the transaction.
(3) If a paper document is not issued, the essential elements
(e.g., date, vendor, items or services, price, delivery date) shall be
recorded on the purchase requisition, in an informal memorandum, or on
a form developed locally for the purpose.
(4) Documentation of purchases under BPAs shall also cite the
pertinent purchase requisitions and the accounting and appropriation
data.
(5) When delivery is made or the services are performed, the
vendor's sales document, delivery document, or invoice may (if it
reflects the essential elements) be used for the purpose of recording
receipt and acceptance of the items or services. However, if the
purchase is assigned to another activity for administration, receipt
and acceptance of supplies or services shall be documented by
signature and date on the agency specified form by the authorized
Government representative after verification and notation of any
exceptions.
13.205 Review procedures.
(a) The contracting officer placing orders under a BPA, or the
designated representative of the contracting officer, shall review a
sufficient random sample of the BPA files at least annually to ensure
that authorized procedures are being followed.
(b) The contracting officer that entered into the BPA shall
(1) Ensure that each BPA is reviewed at least annually and, if
necessary, updated at that time; and
(2) Maintain awareness of changes in market conditions, sources of
supply, and other pertinent factors that may warrant making new
arrangements with different suppliers or modifying existing
arrangements.
(c) If an office other than the purchasing office that established
a BPA is authorized to make purchases under that BPA, the agency that
has jurisdiction over the office authorized to make the purchases
shall ensure that the procedures in paragraph (a) of this section are
being followed.
13.206 Completion of Blanket Purchase Agreements.
An individual BPA is considered complete when the purchases under
it equal its total dollar limitation, if any, or when its stated time
period expires.
44. Subpart 13.3 is revised to read as follows:
Subpart 13.3Fast Payment Procedure
Sec.
13.301 General.
13.302 Conditions for use.
13.303 Preparation and execution of orders.
13.304 Responsibility for collection of debts.
13.305 Contract clause.
13.301 General.
The fast payment procedure allows payment under limited conditions
to a contractor prior to the Government's verification that supplies
have been received and accepted. The procedure provides for payment
for supplies based on the contractor's submission of an invoice that
constitutes a representation that
(a) The supplies have been delivered to a post office, common
carrier, or point of first receipt by the Government; and
(b) The contractor agrees to replace, repair, or correct supplies
not received at destination, damaged in transit, or not conforming to
purchase agreements.
13.302 Conditions for use.
If the conditions in paragraphs (a) through (f) of this section
are present, the fast payment procedure may be used, provided that use
of the procedure is consistent with the other conditions of the
purchase. The conditions for use of the fast payment procedure are as
follows:
(a) Individual orders do not exceed $25,000 except that executive
agencies may permit higher dollar limitations for specified activities
or items on a casebycase basis.
(b) Deliveries of supplies are to occur at locations where there
is both a geographical separation and a lack of adequate
communications facilities between Government receiving and disbursing
activities that will make it impractical to make timely payment based
on evidence of Government acceptance. Use of the fast payment
procedure would not be indicated, for example, for small purchases by
an activity if material being purchased is destined for use at that
activity and contract administration will be performed by the
contracting office at that activity.
(c) Title to the supplies will vest in the Government
(1) Upon delivery to a post office or common carrier for mailing
or shipment to destination; or
(2) Upon receipt by the Government if the shipment is by means
other than Postal Service or common carrier.
(d) The supplier agrees to replace, repair, or correct supplies
not received at destination, damaged in transit, or not conforming to
purchase requirements.
(e) The purchasing instrument is a firmfixed price contract, a
purchase order, or a delivery order for supplies.
(f) A system is in place to ensure
(1) Documenting evidence of contractor performance under fast
payment acquisitions;
(2) Timely feedback to the contracting officer in case of
contractor deficiencies; and
(3) Identification of suppliers who have a current history of
abusing the fast payment procedure (also see subpart 9.1).
13.303 Preparation and execution of orders.
(a) Except when orders are placed via FACNET, orders incorporating
the fast payment procedure should be issued on Optional Form 347,
Order for Supplies or Services, or other agency authorized purchase
order form (see 13.204(e) for purchases under BPAs). Orders may be
either priced or unpriced.
(b) Contracts, purchase orders, or BPAs using the fast payment
procedure shall include the following:
(1) A requirement that the supplies be shipped transportation or
postage prepaid.
(2) A requirement that invoices be submitted directly to the
finance or other office designated in the order, or in the case of
unpriced purchase orders, to the contracting officer (see 13.502(c)).
(3) The following statement on consignee's copy:
Consignee's Notification to Purchasing Activity of Nonreceipt, Damage,
or Nonconformance
The consignee shall notify the purchasing office promptly after
the specified date of delivery of supplies not received, damaged in
transit, or not conforming to specifications of the purchase order.
Unless extenuating circumstances exist, the notification should be
made not later than 60 days after the specified date of delivery.
(4) A requirement that the contractor mark outer shipping
containers ``FAST PAY.''
13.304 Responsibility for collection of debts.
The contracting officer shall be primarily responsible for
collecting debts resulting from failure of contractors to properly
replace, repair, or correct supplies lost, damaged, or not conforming
to purchase requirements (see 32.605(b) and 32.606).
13.305 Contract clause.
The contracting officer shall insert the clause at 52.2131, Fast
Payment Procedure, in solicitations and contracts when the conditions
in 13.302 are applicable and it is intended that the fast payment
procedure be used in the contract (in the case of BPAs, the
contracting officer may elect to insert the clause either in the BPA
or in orders under the BPA).
45. Subpart 13.4 is revised to read as follows:
Subpart 13.4Imprest Fund
Sec.
13.401 General.
13.402 Agency responsibilities.
13.403 Conditions for use.
13.404 Procedures.
13.401 General.
This subpart prescribes policies and procedures for using imprest
funds to purchase supplies or services. Related policies and
regulations concerning the establishment of and accounting for imprest
funds, including the responsibilities of designated cashiers and
alternates, are contained in Part IV of the Treasury Financial Manual
for Guidance of Departments and Agencies, Title 7 of the General
Accounting Office Policy and Procedures Manual for Guidance of Federal
Agencies, and the agency implementing regulations. Agencies shall also
be guided by the Manual of Procedures and Instructions for Cashiers,
issued by the Financial Management Service, Department of the
Treasury.
13.402 Agency responsibilities.
Each agency using imprest funds shall
(a) Periodically review and determine whether there is continuing
need for each fund established, and that amounts of those funds are
not in excess of actual needs;
(b) Take prompt action to have imprest funds adjusted to a level
commensurate with demonstrated needs whenever circumstances warrant
such action; and
(c) Develop and issue appropriate implementing regulations. These
regulations shall include (but are not limited to) procedures
covering
(1) Designation of personnel authorized to make purchases using
imprest funds; and
(2) Documentation of purchases using imprest funds, including
documentation of
(i) Receipt and acceptance of supplies and services by the
Government;
(ii) Receipt of cash payments by the suppliers; and
(iii) Cash advances and reimbursements.
13.403 Conditions for use.
Imprest funds may be used for purchases when
(a) The transaction does not exceed $500 or such other limits as
have been approved by the agency head;
(b) The use of imprest funds is considered to be advantageous
to
the Government; and
(c) The use of imprest funds for the transaction otherwise
complies with any additional conditions established by agencies and
with the policies and regulations referenced in 13.401.
13.404 Procedures.
(a) Each purchase using imprest funds shall be based upon an
authorized purchase requisition.
(b) Normally, orders to suppliers should be placed orally and
without soliciting competition if prices are considered reasonable.
(c) Purchases shall be distributed equitably among qualified
suppliers.
(d) Prompt payment discounts shall be solicited.
(e) Any agencyauthorized purchase order form or Standard Form
1165, Receipt for CashSubvoucher, may be used if a written order is
considered necessary (e.g., if required by the supplier for discount,
tax exemption, or other reasons). If a purchase order is used for this
purpose, it shall be endorsed ``Payment to be made from Imprest
Fund''.
(f) The individual authorized to make purchases using imprest
funds shall
(1) Furnish to the imprest fund cashier a copy of the purchase
requisition annotated to reflect
(i) That an imprest fund purchase has been made;
(ii) The unit prices and extensions;
(iii) The supplier's name and address; and
(iv) The date of anticipated delivery; and
(2) Require the supplier to include with delivery of the supplies
an invoice, packing slip, or other sales instrument giving
(i) The supplier's name and address;
(ii) List and quantity of items;
(iii) Unit prices and extensions; and
(iv) Cash discount, if any.
46. Subpart 13.5 is revised to read as follows:
Subpart 13.5Purchase Orders
Sec.
13.501 General.
13.502 Unpriced purchase orders.
13.503 Obtaining contractor acceptance and modifying purchase orders.
13.504 Termination or cancellation of purchase orders.
13.505 Purchase order and related forms.
13.5051 Optional Form (OF) 347, Order for Supplies or Services, and
Optional Form 348, Order for Supplies or Services Schedule
Continuation.
13.5052 [Reserved]
13.5053 Standard Form 44, Purchase OrderInvoiceVoucher.
13.506 Unsigned electronic purchase orders.
13.507 Provisions and clauses.
13.501 General.
(a) Except as provided under the unpriced purchase order method
(see 13.502), purchase orders shall be issued on a fixedprice basis
unless otherwise authorized by agency procedures.
(b) Purchase orders shall include any trade and prompt payment
discounts that are offered, consistent with the applicable principles
in 14.4083.
(c) Purchase orders shall specify the quantity of supplies or
services ordered.
(d) Inspections under simplified acquisition procedures shall be
as prescribed in part 46. Orders generally shall provide that
inspection and acceptance will be at destination, and source
inspection should be specified only if required by part 46. If
inspection and acceptance are to be performed at destination, advance
copies of the purchase order shall be furnished to consignee(s) for
material receipt purposes. Receiving reports shall be accomplished
immediately upon receipt and acceptance of material.
(e) F.o.b. destination shall be specified for supplies to be
delivered within the United States, except Alaska and Hawaii, unless
there are valid reasons to the contrary.
(f) Each purchase order shall contain a determinable date by which
delivery of supplies or performance of services is required.
(g) The contracting officer's signature on purchase orders shall
be in accordance with 4.101. Facsimile signature may be used in the
procedure of purchase orders by automated methods.
(h) Distribution of copies of purchase orders and related forms
shall be limited to those copies required for essential administration
and transmission of contractual information.
13.502 Unpriced purchase orders.
(a) An unpriced purchase order is an order for supplies or
services, the price of which is not established at the time of
issuance of the order.
(b) An unpriced purchase order may be used only when
(1) It is anticipated that the transaction will not exceed
(i) $50,000; or
(ii) $100,000 when the contracting office of an agency has
certified interim or full FACNET (see 13.103(b)).
(2) It is impractical to obtain pricing in advance of issuance of
the purchase order; and
(3) The purchase if for
(i) Repairs to equipment requiring disassembly to determine the
nature and extent of repairs;
(ii) Material available from only one source and for which cost
cannot be readily established; or
(iii) Supplies or services for which prices are known to be
competitive but exact prices are not known (e.g., miscellaneous repair
parts, maintenance agreements).
(c) Unpriced purchase orders may be issued by using written
purchase orders or electronically (see 13.506). A realistic monetary
limitation, either for each line item or for the total order,
shall be
placed on each unpriced purchase order. The monetary limitation shall
be an obligation subject to adjustment when the firm price is
established. The contracting office shall followup each order to
ensure timely pricing. The contracting officer or the contracting
officer's designated representative shall review the invoice price
and, if reasonable (see 13.1062(a)), process the invoice
for payment.
13.503 Obtaining contractor acceptance and modifying purchase
orders.
(a) When it is desired to consummate a binding contract between
the parties before the contractor undertakes performance, the
contracting officer shall require written acceptance of the purchase
order by the contractor.
(b) A purchase order may be modified by use of
(1) Standard Form 30, Amendment of Solicitation/Modification of
Contract;
(2) An agencydesigned form or an agencyapproved automated
format; or
(3) A purchase order form, if not prohibited by agency
regulations.
(c) Each purchase order modification shall identify the order it
modifies and shall contain an appropriate modification number.
(d) Contracting officers need not obtain a contractor's written
acceptance of a purchase order modification, unless the written
acceptance is
(1) Determined by the contracting officer to be necessary to
ensure the contractor's compliance with the purchase order as revised;
or
(2) Required by agency regulations.
13.504 Termination or cancellation of purchase orders.
(a) If a purchase order that has been accepted in writing by the
contractor is to be terminated, the contracting officer shall process
the termination action as prescribed by part 49.
(b) If a purchase order that has not been accepted in writing by
the contractor is to be canceled, the contracting officer shall notify
the contractor in writing that the purchase order has been canceled,
request the contractor's written acceptance of the cancellation, and
proceed as follows:
(1) If the contractor accepts the cancellation and does not claim
that costs were incurred as a result of beginning performance under
the purchase order, no further action is required (i.e., the purchase
order shall be considered canceled).
(2) If the contractor does not accept the cancellation or claims
that costs were incurred as a result of beginning performance under
the purchase order, the contracting officer shall process the
termination action as prescribed by part 49.
13.505 Purchase order and related forms.
13.5051 Optional Form (OF) 347, order for supplies or services, and
Optional Form 348, order for supplies or services schedule
continuation.
(a) Optional Form 347 (illustrated in 53.302347) and Optional
Form 348 (illustrated in 53.302348) are multipurpose forms designed
for the following:
(1) Negotiated purchases of supplies or services.
(2) Delivery orders.
(3) Inspection and receiving reports.
(4) Invoices.
(b) Agencies may use order forms other than Optional Form 347 and
348 and may print on those forms the clauses they consider to be
generally suitable for their purchases using simplified acquisition
procedures. The clauses may include agency clauses, if they do not
conflict with clauses prescribed by the FAR and are designated as
agency clauses.
13.5052 [Reserved]
13.5053 Standard Form 44, purchase orderinvoicevoucher.
(a) Standard Form 44, Purchase OrderInvoiceVoucher (illustrated
in 53.30144) is a pocketsize purchase order form designed primarily
for onthespot, overthecounter purchases of supplies and
nonpersonal services while away from the purchasing office or at
isolated activities. It is a multipurpose form that can be used as a
purchase order, receiving report, invoice, and public voucher.
(b) Standard Form 44 may be used if all of the following
conditions are satisfied:
(1) The amount of the purchase is at or below the micropurchase
threshold, except for purchases made under unusual and compelling
urgency or in support of a contingency operation. Agencies may
establish higher dollar limitations for specific activities or items.
(2) The supplies or services are immediately available.
(3) One delivery and one payment will be made.
(4) Its use is determined to be more economical and efficient than
use of other simplified acquisition methods.
(c) General procedural instructions governing the use of Standard
Form 44 are printed on the form and on the inside front cover of each
book of forms.
(d) Since there is, for all practical purposes, simultaneous
placing of purchase orders on Standard Form 44 and delivery of the
items ordered, clauses are not required for purchases using this form.
(e) Agencies shall provide adequate safeguards regarding the
control of forms and accounting for purchases.
{13.506} Unsigned electronic purchase orders.
(a) [An unsigned electronic] purchase order (EPO) may be [issued]
when [] the following conditions are present[]
(1) Its use is more advantageous to the Government than any other
[simplified acquisition method;]
(2) [It] is acceptable to the supplier[;]
(3) [It] is approved by the contracting officer[;]
(4) [It] does not require written acceptance by the supplier[;
and]
(5) The purchasing office retains all contract administration
functions.
([b]) When [an unsigned EPO] is used
(1) [Appropriate] clauses shall be incorporated by reference [];
(2) Administrative information that is not needed by the supplier
[] [shall] be placed only on copies intended for internal
distribution;
(3) The same distribution shall be made of the [unsigned EPO] as
is made of signed purchase orders; and
(4) No purchase order form [is required].
(c) [An unsigned EPO] may be unpriced if it meets the conditions
in 13.502.
{13.507} Provisions and clauses.
(a) Each purchase order (and each purchase order modification (see
13.503)) shall incorporate all clauses required for or applicable to
the particular acquisition.
(b) The contracting officer shall insert the clause at 52.2132,
Invoices, in purchase orders that authorize advance payments (see 31
U.S.C. 3324(d)(2)) for subscriptions or other charges for newspapers,
magazines, periodicals, or other publications (i.e., any publication
printed, microfilmed, photocopied, or magnetically or otherwise
recorded for auditory or visual usage).
(c) The contracting officer shall insert the clause at 52.2133,
Notice to Supplier, in unpriced purchase orders.
PART 15CONTRACTING BY NEGOTIATION
47. Section 15.1061 is amended by revising paragraph (b)(1) to
read as follows:
15.1061 Examination of Record clause.
* * * * *
(b) * * *
(1) The contract amount is at or below the simplified acquisition
threshold;
* * * * *
48. Section 15.1062 is amended by revising the first sentence in
paragraph (b) to read as follows:
15.1062 AuditNegotiation clause.
* * * * *
(b) The contracting officer shall insert the clause at 52.2152,
AuditNegotiation, in solicitations and contracts when contracting
by
negotiation, unless the acquisition is made under simplified
acquisition procedures. * * *
49. Section 15.401 is amended by revising paragraph (a) to read as
follows:
15.401 Applicability.
* * * * *
(a) Acquisitions made under simplified acquisition procedures (see
part 13); and
* * * * *
50. Section 15.602 is amended by revising paragraph (b) to read as
follows:
15.602 Applicability.
* * * * *
(b) This subpart does not apply to acquisitions using simplified
acquisition procedures (see part 13).
51. Section 15.8042 is amended by revising the first sentence of
paragraph (a)(3) introductory text; and (a)(4) and (a)(5) to read as
follows:
15.8042 Requiring certified cost or pricing data.
(a) * * *
* * * * *
(3) The contracting officer may obtain certified cost or pricing
data for pricing actions below the pertinent threshold in paragraph
(a)(1) of this section provided the action exceeds the simplified
acquisition threshold. * * *
* * * * *
(4) The contracting officer shall not require certified cost or
pricing data when awarding a contract below the simplified acquisition
threshold in part 13.
(5) When certified cost or pricing data are not required, the
contracting officer may request partial or limited data to determine a
reasonable price.
* * * * *
52. Section 15.8122 is amended by revising paragraph (a)(1) to
read as follows:
15.8122 Contract clause.
(a) * * *
(1) Acquisitions at or below the simplified acquisition threshold;
* * * * *
53. Section 15.1001 is amended by revising the first sentence of
paragraph (b)(1), and (c)(1) introductory text and (c)(3) to read as
follows:
15.1001 Notifications to unsuccessful offerors.
* * * * *
(b) * * * (1) When the proposal evaluation period for a
solicitation not using simplified acquisition procedures in part 13 is
expected to exceed 30 days, or when a limited number of offerors have
been selected as being within the competitive range (see 15.609), the
contracting officer, upon determining that a proposal is unacceptable,
shall promptly notify the offeror. * * *
* * * * *
(c) Postaward notices. (1) After award of contracts resulting from
solicitations not using simplified acquisition procedures, the
contracting officer shall notify unsuccessful offerors in writing or
electronically, unless preaward notice was given under paragraph (b)
of this section. The notice shall include
* * * * *
(3) Upon request, the contracting officer shall furnish the
information described in 15.1001(c)(1) (i) through (v) to unsuccessful
offerors in solicitations using simplified acquisition procedures in
part 13.
PART 16TYPES OF CONTRACTS
54. Section 16.000 is amended by revising the first sentence to
read as follows:
16.000 Scope of part.
This part describes types of contracts that may be used in
acquisitions other than those made under simplified acquisition
procedures in part 13, unless otherwise authorized by agency
procedures. * * *
55. Section 16.103 is amended by revising paragraph (d)(1) to read
as follows:
16.103 Negotiating contract type.
* * * * *
(d) * * * (1) acquisitions made under simplified acquisition
procedures in part 13, unless otherwise required under agency
procedures,
* * * * *
56. Section 16.105 is revised to read as follows:
16.105 Solicitation provision.
The contracting officer shall complete and insert the provision at
52.2161, Type of Contract, in a solicitation unless it is for
(a) A fixedprice acquisition made under simplified acquisition
procedures (see part 13); or
(b) Information or planning purposes.
PART 19SMALL BUSINESS PROGRAMS
19.102 [Amended]
57. Section 19.102 is amended by removing paragraph (f)(3) and
redesignating paragraphs (f)(4) through (f)(7) as (f)(3) through
(f)(6).
58. Section 19.303 is amended by revising paragraph (a) to read as
follows:
19.303 Determining product or service classifications.
(a) The contracting officer shall determine the appropriate
standard industrial classification code and related small business
size standard and include them in solicitations above the
micropurchase threshold in 13.101.
* * * * *
19.104(sic should be 19.304) [Amended]
59. Section 19.304 is amended in paragraph (a) after the word
``solicitations'' by adding the parenthetical ``(other than micro
purchases)'', and in paragraphs (b), (c), and (d) by removing the
parenthetical ``(other than those for small purchases)'' and inserting
``(other than micropurchases)'' in its place.
19.501 [Amended]
60. Section 19.501 is amended by removing from paragraph (d) the
phrase ``small purchase limitation in 13.000'' and inserting in its
place ``micropurchase threshold in 13.101''; by removing paragraphs
(f) and (g) and redesignating paragraphs (h), (i), and (j) as (f), (g)
and (h); and by removing the last two sentences from paragraph
(c).
61. Section 19.5021 is amended by adding a sentence at the end of
paragraph (c) to read as follows:
19.5021 Requirements for setting aside acquisitions.
* * * * *
(c) * * * This requirement does not apply to purchases of $2,500
or less, purchases from required sources of supply under part 8 (e.g.,
Federal Prison Industries, Committee for Purchase From People Who Are
Blind or Severely Disabled, and Federal Supply Schedule contracts), or
orders under Federal Information Processing (FIP) Multiple Award
Schedule contracts.
62. Section 19.5022 is revised to read as follows:
19.5022 Total setasides.
(a) Each acquisition of supplies or services that has an
anticipated dollar value exceeding $2,500, but not over $100,000, is
automatically reserved exclusively for small business concerns, unless
the contracting officer is unable to obtain offers from two or more
small business concerns that are competitive with market prices and
with regard to the quality and delivery of the goods or services being
purchased. This requirement does not preclude the award of a contract
with a value not greater than $100,000 under 19.8, Contracting with
the Small Business Administration, or under 19.1006(c), Emerging small
business setaside.
(b) The contracting officer shall set aside any acquisition over
$100,000 for small business participation when there is a reasonable
expectation that (1) offers will be obtained from at least two
responsible small business concerns offering the products of different
small business concerns (but see paragraph (c) of this subsection);
and (2) awards will be made at fair market prices. Total small
business setasides shall not be made unless such a reasonable
expectation exists (but see 19.5023 as to partial setasides).
Although past acquisition history of the item or similar items is
always important, it is not the only factor to be considered in
determining whether a reasonable expectation exists. In making R&D
small business setasides, there must also be a reasonable expectation
of obtaining from small businesses the best scientific and
technological sources consistent with the demands of the proposed
acquisition for the best mix of cost, performances, and schedules.
(c) For setasides other than for construction or services, any
concern proposing to furnish the product which it did not itself
manufacture must furnish the product of a small business manufacturer
unless the Small Business Administration has granted a waiver (see
19.102(f)). In industries where the SBA finds that there are no small
business manufacturers, it may waive the nonmanufacturers rule for
regular dealers (see 19.102(f)(4)). This would permit small business
regular dealers to provide any firm's product. In these cases, the
contracting officer's determination in paragraph (b)(1) of this
subsection or the decision not to setaside a procurement reserved for
small business under paragraph (a) of this subsection will be based on
the expectation of receiving offers from at least two responsible
small business regular dealers offering the products of different
concerns.
(d) The requirements of this subsection do not apply to
acquisitions over $25,000 during the period when setasides cannot be
considered for the four designated industry groups (see 19.1006(b)).
19.5023 [Amended]
63. Section 19.5023 is amended in paragraph (a)(4) by removing
the phrase ``small purchase procedures'' and inserting ``simplified
acquisition procedures'' in its place.
64. Section 19.5024 is amended by revising paragraph (a) to read
as follows:
19.5024 Methods of conducting setasides.
(a) Total setasides may be conducted by using simplified
acquisition procedures (see part 13), sealed bids (see part 14), or
competitive proposals (see part 15). Partial small business setasides
may be conducted using sealed bids (see part 14), or competitive
proposals (see part 15).
* * * * *
65. Section 19.503 is amended by revising paragraph (c)(2) to read
as follows:
19.503 Setting aside a class of acquisitions.
* * * * *
(c) * * *
(2) Provide that the setaside does not apply to any acquisition
automatically reserved for small business concerns under 19.5022(a).
* * * * *
66. Section 19.506 is amended by revising the last sentence of
paragraph (b) to read as follows:
19.506 Withdrawing or modifying setasides.
* * * * *
(b) * * * However, the procedures are not applicable to automatic
dissolutions of setasides (19.507) or dissolutions of setasides of
acquisitions automatically reserved exclusively for small business
concerns (19.5022(a)).
* * * * *
19.508 [Amended]
67. Section 19.508 is amended by removing and reserving paragraph
(a); by removing ``19.5022(b)'' at the end of paragraphs (b), (c) and
(d) and inserting ``19.5022(c)'' in their place; by removing
the word
``not'' in the last sentence of paragraphs (b), (c) and (d) and
inserting ``no'' in their place; and by removing the phrase ``small
purchase procedures'' in paragraph (e) and inserting ``simplified
acquisition procedures'' in its place.
19.702 [Amended]
68. Section 19.702 is amended by removing the phrase ``small
purchase limitation in 13.000'' from the introductory text and
inserting ``the simplified acquisition threshold in 13.101'' in its
place.
19.708 [Amended]
69. Section 19.708 is amended in paragraph (a) introductory text
by removing the phrase ``small purchase limitation in 13.000'' and
inserting ``the simplified acquisition threshold in 13.101'' in its
place.
19.902 [Amended]
70. Section 19.902 is amended by removing the phrase ``small
purchase limitation'' in the introductory text and inserting
``simplified acquisition threshold'' in its place.
19.1006 [Amended]
71. Section 19.1006 is amended in paragraph (c)(3) by removing the
phrase ``small purchase'' and inserting ``simplified acquisition'' in
its place.
PART 20LABOR SURPLUS AREA CONCERNS
20.103 [Amended]
72. Section 20.103 is amended by removing the phrase ``appropriate
small purchase limitation in part 13'' in paragraph (b) and inserting
``simplified acquisition threshold in 13.101'' in its place.
20.104 [Amended]
73. Section 20.104 is amended by removing the phrase ``appropriate
small purchase limitation in part 13'' in the introductory text and
inserting ``simplified acquisition threshold in 13.101'' in its
place.
20.202 [Amended]
74. Section 20.202 is amended by removing the phrase ``appropriate
small purchase limitation in part 13'' and inserting ``simplified
acquisition threshold in 13.101'' in its place.
20.301 [Amended]
75. Section 20.301 is amended in paragraph (a) by removing the
phrase ``appropriate small purchase limitation in part 13'' and
inserting ``simplified acquisition threshold in 13.101'' in its
place.
20.302 [Amended]
76. Section 20.302 is amended in paragraph (a) introductory text
by removing the phrase ``appropriate small purchase limitation in part
13'' and inserting ``simplified acquisition threshold in 13.101'' in
its place.
PART 22APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.202 [Amended]
77. Section 22.202 is amended in the introductory text by adding
the phrase ``above the micropurchase threshold,'' after
``contracts''.
78. Section 22.305 is amended by revising the first sentence of
the introductory text and paragraph (a), removing paragraph (b) and
redesignating paragraphs (c) through (h) as (b) through (g) to read as
follows:
22.305 Contract clause.
The contracting officer shall insert the clause at 52.2224,
Contract Work Hours and Safety Standards ActOvertime Compensation, in
solicitations and contracts (including, for this purpose, basic
ordering agreements) when the contract may require or involve the
employment of laborers or mechanics. * * *
(a) Contracts at or below the simplified acquisition threshold.
* * * * *
22.1006 Contract clauses.
79. Section 22.1006 is amended by revising the heading to read as
set forth above and by removing from the first two sentences of
paragraphs (c)(1) and (c)(2) the phrase ``small purchase limitation''
and inserting ``simplified acquisition threshold'' in their places.
PART 23ENVIRONMENT CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG
FREE WORKPLACE
80. Section 23.101 is amended by revising the first sentence to
read as follows:
23.101 Applicability.
This subpart does not apply to contracts at or below the
simplified acquisition threshold or to the use of facilities outside
the United States. * * *
81. Section 23.501 is amended by revising paragraph (a) to read as
follows:
23.501 Applicability.
* * * * *
(a) Contracts at or below the simplified acquisition threshold;
however, the requirements of this subpart shall apply to contracts of
any value if the contract is awarded to an individual;
* * * * *
82. Section 23.504 is amended by revising the introductory text of
paragraph (a) to read as follows:
23.504 Policy.
(a) No offeror other than an individual shall be considered a
responsible source (see 9.1041) for a contract that exceeds the
simplified acquisition threshold, unless it has certified, pursuant to
52.2235, Certification Regarding a DrugFree Workplace, that it will
provide a drugfree workplace by
* * * * *
83. Section 23.505 is amended by revising paragraph (a)(2) to read
as follows:
23.505 Solicitation provision and contract clause.
(a) * * *
(2) Expected to exceed the simplified acquisition threshold if the
contract is expected to be awarded to other than an individual; or
* * * * *
PART 25FOREIGN ACQUISITION
84. Section 25.302 is amended by revising paragraph (b)(1) to read
as follows:
25.302 Policy.
* * * * *
(b) * * *
(1) The estimated cost of the product or service is at or below
the simplified acquisition threshold in part 13.
* * * * *
85. Section 25.703 is amended by revising the third sentence to
read as follows:
25.703 Exceptions.
* * * The approval level for this exception is the contracting
officer for acquisitions at or below the simplified acquisition
threshold unless otherwise provided by agency procedures. In the case
of contracts in excess of the simplified acquisition threshold, the
approval level is the agency head. * * *
PART 27PATENTS, DATA, AND COPYRIGHTS
86. Section 27.2012 is amended by revising paragraph (a) to read
as follows:
27.2012 Clauses on authorization and consent.
(a) The contracting officer shall insert the clause at 52.2271,
Authorization and Consent, in solicitations and contracts (including
those for construction; architectengineer services; dismantling,
demolition, or removal of improvements; and noncommon carrier
communication services), except when using simplified acquisition
procedures or both complete performance and delivery are outside the
United States, its possessions, and Puerto Rico. Although the clause
is not required when simplified acquisition procedures are used, it
may be used with them.
* * * * *
87. Section 27.2022 is revised to read as follows:
27.2022 Clause on notice and assistance.
The contracting officer shall insert the clause at 52.2272,
Notice and Assistance Regarding Patent and Copyright Infringement, in
supply, service, or research and development solicitations and
contracts (including construction and architectengineer contracts)
which anticipate a contract value above the simplified acquisition
threshold, except when complete performance and delivery are outside
the United States, its possessions, and Puerto Rico, unless the
contracts indicate that the supplies or other deliverables are
ultimately to be shipped into one of those areas.
88. Section 27.2031 is amended by revising paragraph (b)(4) to
read as follows:
27.2031 General.
* * * * *
(b) * * *
(4) When the contract is awarded using simplified acquisition
procedures.
* * * * *
PART 28BONDS AND INSURANCE
89. Section 28.1032 is amended by revising the first sentence of
paragraph (a) to read as follows:
28.1032 Performance bonds.
(a) Performance bonds may be required for contracts exceeding the
simplified acquisition threshold when necessary to protect the
Government's interest. * * *
* * * * *
90. Section 28.310 is amended by revising paragraph (a)
introductory text to read as follows:
28.310 Contract clause for work on a Government installation.
(a) The contracting officer shall insert the clause at 52.2285,
InsuranceWork on a Government Installation, in solicitations and
contracts when a fixedprice contract is contemplated, the contract
amount is expected to exceed the simplified acquisition threshold in
part 13, and the contract will require work on a Government
installation, unless
* * * * *
PART 29TAXES
91. Section 29.4013 is revised to read as follows:
29.4013 Competitive contracts.
The contracting officer shall insert the clause at 52.2293,
Federal, State, and Local Taxes, in solicitations and contracts if the
contract is to be performed wholly or partly within the United States,
its possessions, or Puerto Rico, when a fixedprice contract is
contemplated and the contract is expected to exceed the simplified
acquisition threshold in part 13, unless the clause at 52.2294,
Federal, State, and Local Taxes (Noncompetitive Contract), is included
in the contract.
29.4014 [Amended]
92. Section 29.4014 is amended by removing the words ``small
purchase limitation in 13.000'' after the words ``exceeds the'' and
inserting ``simplified acquisition threshold in part 13'' in its
place.
PART 32CONTRACT FINANCING
93. Section 32.617 is amended by revising paragraph (a)(1) to read
as follows:
32.617 Contract clause.
(a) * * *
(1) Contracts at or below the simplified acquisition threshold.
* * * * *
94. Section 32.901 is revised to read as follows:
32.901 Applicability.
This subpart applies to all Government contracts (including
contracts at or below the simplified acquisition threshold as defined
in subpart 13.1), except contracts with payment terms and late payment
penalties established by other governmental authority (e.g., tariffs).
95. Section 32.908 is amended by revising paragraph (c) to read as
follows:
32.908 Contract clauses.
* * * * *
(c) The contracting officer shall insert the clause at 52.23225,
Prompt Payment, in all other solicitations and contracts (including
contracts at or below the simplified acquisition threshold in part
13), except as indicated in 32.901.
* * * * *
33.106 [Amended]
96. Section 33.106(a) is amended by removing ``other than small
purchases'' and inserting ``contracts expected to exceed the
simplified acquisition threshold'' in its place.
PART 36CONSTRUCTION AND ARCHITECTENGINEER CONTRACTS
36.6025 Short selection process for contracts not to exceed the
simplified acquisition threshold.
97. The heading of 36.6025 is revised to read as set forth
above.
36.502, 36.503, 36.506, 36.508, 36.509, 36.510, 36.512, 36.513,
36.515, 36.521, 36.6025, and 36.702 [Amended]
98. Part 36 is amended removing the phrase ``exceed the small
purchase limitation'' and inserting ``exceed the simplified
acquisition threshold'' in its place in the following locations:
36.502, 36.503, 36.506, 36.508, 36.509, 36.510, 36.512, 36.513(a),
36.515, 36.521, 36.6025 introductory text, 36.702(b)(2).
36.511 and 36.701 [Amended]
99. Part 36 is amended by removing the phrase ``exceed the small
purchase limitations'' and inserting ``exceed the simplified
acquisition threshold'' in the following locations: 36.511 and
36.701(b).
36.502, 36.503, 36.506, 36.508, 36.509, 36.510, 36.512, 36.513,
36.521, and 36.701 [Amended]
100. Part 36 is amended by removing the phrase ``within the small
purchase limitation'' and inserting ``at or below the simplified
acquisition threshold'' at the following locations: 36.502, 36.503,
36.506, 36.508, 36.509, 36.510, 36.512, 36.513(a), 36.521, 36.701(c).
36.511, 36.701, and 36.702 [Amended]
101. Part 36 is amended by removing the phrase ``within the small
purchase limitations'' and inserting ``at or below the simplified
acquisition threshold'' at the following locations: 36.511, 36.701(b),
and 36.702(b)(2).
PART 41ACQUISITION OF UTILITY SERVICES
102. In 41.201(b), the first sentence is revised to read as
follows:
41.201 Policy.
* * * * *
(b) Except for acquisitions at or below the simplified acquisition
threshold in part 13, agencies shall acquire utility services by a
bilateral written contract, which must include the clauses required by
41.501, regardless of whether rates or terms and conditions of service
are fixed or adjusted by a regulatory body. * * *
* * * * *
41.401 [Amended]
103. Section 41.401 is amended in the first sentence by removing
``small purchase'' and inserting ``simplified acquisition'' in its
place, and in the second sentence by removing ``beneath the small
purchase dollar'' and inserting ``at or below the simplified
acquisition'' in its place.
PART 42CONTRACT ADMINISTRATION
42.903 [Amended]
104. In section 42.903, the phrase ``small purchase limitation in
13.000'' is removed and ``simplified acquisition threshold in part
13'' is inserted in its place.
42.1104 [Amended]
105. In 42.1104(b) the phrase ``Contracts of values less than the
small purchase'' is removed and ``Contracts at or below the simplified
acquisition threshold'' is inserted in its place.
PART 43CONTRACT MODIFICATIONS
43.205 [Amended]
106. In section 43.205(d)(2) and (e), the phrase ``applicable
small purchase limitation'' is removed and ``simplified acquisition
threshold'' is inserted in its place.
PART 44SUBCONTRACTING POLICIES AND PROCEDURES
44.2012 and 44.204 [Amended]
107. In sections 44.2012(b) and 44.204(e), the phrase ``small
purchase limitation'' is removed and ``simplified acquisition
threshold'' is inserted in its place.
PART 45GOVERNMENT PROPERTY
108. Section 45.106 is amended by revising paragraph (e) to read
as follows:
45.106 Government property clauses.
* * * * *
(e) When the cost of the item to be repaired does not exceed the
simplified acquisition threshold in part 13, purchase orders for
property repair need not include a Government property clause.
* * * * *
PART 46QUALITY ASSURANCE
46.2021 [Amended]
109. In section 46.2021(a), the phrase ``under small purchases''
is removed and ``at or below the simplified acquisition threshold'' is
inserted in its place.
46.301 [Amended]
110. In section 46.301 in the introductory text the phrase
``within the small purchase limitation'' is removed and ``at or below
the simplified acquisition threshold'' is inserted in its place.
46.302 [Amended]
111. In the first sentence of section 46.302, the phrase ``small
purchase limitation'' is removed and ``simplified acquisition
threshold'' is inserted in its place; and in the second sentence, the
phrase ``within the small purchase limitation'' is removed and ``at or
below the simplified acquisition threshold'' is inserted in its
place.
46.304 [Amended]
112. In section 46.304, in the first sentence the phrase ``small
purchase limitation'' is removed and ``simplified acquisition
threshold'' is inserted in its place, and in the second sentence, the
phrase ``within the small purchase limitation'' is removed and ``at or
below the simplified acquisition threshold'' is inserted in its place.
46.307 [Amended]
113. In section 46.307(a)(3), the phrase ``small purchase
limitation'' is removed and ``simplified acquisition threshold'' is
inserted in its place; and in paragraph (b) the phrase ``within the
small purchase limitation'' is removed and ``at or below the
simplified acquisition threshold'' is inserted in its place.
46.312 [Amended]
114. In the first sentence of section 46.312, the phrase ``small
purchase limitation'' is removed and ``simplified acquisition
threshold'' is inserted in its place; and in the second sentence the
phrase ``within small purchase limitation'' is removed and ``at or
below the simplified acquisition threshold'' is inserted in its
place.
46.316 [Amended]
115. In section 46.316, the phrase ``small purchase limitation''
is removed and ``simplified acquisition threshold'' is inserted each
time it appears.
46.404 Government contract quality assurance for acquisitions at or
below the simplified acquisition threshold.
116. Section 46.404 is amended by revising the heading to read as
set forth above; by removing the words ``small purchases'' in
paragraphs (a) and (b)(1) and inserting ``contracts at or below the
simplified acquisition threshold'' in their place.
117. Section 46.805 is amended in the heading of paragraph (a) and
introductory text of paragraph (a) by removing ``small purchase
limitation in 13.000'' and inserting ``simplified acquisition
threshold in part 13''; and by revising paragraph (b) to read as
follows:
46.805 Contract clauses.
* * * * *
(b) Acquisitions at or below the simplified acquisition threshold
in part 13. The clauses prescribed by paragraph (a) of this section
are not required for contracts at or below the simplified acquisition
threshold in part 13. However, in response to a contractor's specific
request, the contracting officer may insert the clauses prescribed in
paragraph (a)(1) or (a)(4) of this section in a contract at or below
the simplified acquisition threshold in part 13 and may obtain any
price reduction that is appropriate.
PART 47TRANSPORTATION
118. Section 47.1044(a)(2) is amended by removing the phrase
``small purchases under'' and inserting ``contracts at or below the
simplified acquisition threshold in'' in its place; and revising
paragraph (b) to read as follows:
47.1044 Contract clauses.
* * * * *
(b) The contracting officer may insert the clause at 52.2471,
Commercial Bill of Lading Notations, in solicitations and contracts
made at or below the simplified acquisition threshold in part 13 when
it is contemplated that the delivery terms will be f.o.b. origin.
47.200 [Amended]
119. In 47.200(b)(4), remove the phrase ``Small purchases under''
and insert ``Contracts at or below the simplified acquisition
threshold in'' in its place.
47.205 [Amended]
120. In section 47.205(b), remove the phrase ``small purchase
limitation under the small purchase procedures in part 13'' and insert
``simplified acquisition threshold at 13.101'' in its place.
47.30516 [Amended]
121. In the first sentence of 47.30516(b)(1), remove the phrase
``awarded under the small purchase procedures of'' and insert ``at or
below the simplified acquisition threshold in'' in its place.
122. Section 47.405 is amended by revising the last sentence to
read as follows:
47.405 Contract clause.
* * * This clause does not apply to contracts awarded using the
simplified acquisition procedures in part 13.
123. Section 47.504(d) is revised to read as follows:
47.504 Exceptions.
* * * * *
(d) Contracts awarded using the simplified acquisition procedures
in part 13.
PART 49TERMINATION OF CONTRACTS
49.504 [Amended]
124. In section 49.504 at paragraphs (a) (1), (b) and (c)(1), in
the first sentence remove the phrase ``small purchase limitation'' and
insert ``simplified acquisition threshold'' in its place; and in the
second sentence, remove the phrase ``not expected to exceed the small
purchase limitation'' and insert ``at or below the simplified
acquisition threshold;'' in its place.
PART 52SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.2036 [Amended]
125. In the clause at 52.2036, the date of the clause is revised
to read (JUL 1995), and at the end of paragraph (c), add the phrase
``which exceed $100,000.''
52.2037 [Amended]
126. In the clause at 52.2037, the date of the clause is revised
to read (JUL 1995) andt at the end of paragraph (c)(5) add the phrase
``which exceed $100,000.''
52.2096 [Amended]
127. In the clause at 52.2096, the date of the clause is revised
to read (JUL 1995) and in the second sentence of paragraph (a) and in
paragraph (b) remove the phrase ``the small purchase limitation at FAR
13.000'' and insert ``$25,000''.
128. Sections 52.2132 and 52.2133 are amended by revising the
introductory paragraphs and removing the derivation lines following
``(End of clause)'' to read as follows:
52.2132 Invoices.
As prescribed in 13.507(b), insert the following clause:
* * * * *
52.2133 Notice to supplier.
As prescribed in 13.507(c), insert the following clause:
* * * * *
52.2151 [Amended]
129. Section 52.2151 is amended by revising the clause date to
read ``(JUL 1995)''; in paragraph (a) by removing ``small purchase
limitation'' and inserting ``simplified acquisition threshold'' in its
place; in the first sentence of paragraph (c) by adding the phrase ``,
exceeding $100,000,'' after the first appearance of ``subcontracts'';
and removing the derivation lines after ``(End of clause)''.
52.2152 [Amended]
130. In the clause in 52.2152, the date is revised to read ``(JUL
1995)'', and in paragraph (f), ``are over the small purchase
limitation'' is removed and ``exceed the simplified acquisition
threshold'' is inserted in its place.
131. Section 52.2161 is amended by revising the introductory
paragraph and removing the derivation line following ``(End of
clause)'' to read as follows:
52.2161 Type of contract.
As prescribed in 16.105, complete and insert the following
provision:
* * * * *
52.2194 [Reserved]
132. Section 52.2194 is removed and reserved.
52.2195 [Amended]
133. Section 52.2195 is amended by revising the date of the
clause to read ``(JUL 1995)''; and in paragraph (c)(1)(ii) of the
clause by removing the phrase ``small purchase limitation'' and
inserting ``simplified acquisition threshold'' in its place.
52.2197 [Amended]
134. Section 52.2197 is amended by revising the date of the
clause to read ``(JUL 1995)''; and in paragraph (c)(2) of the clause
by removing the phrase ``small purchase limitation'' and inserting
``simplified acquisition threshold'' in its place.
135. Section 52.2201 is amended by revising the introductory text
to read as follows:
52.2201 Preference for Labor Surplus Area Concerns.
As prescribed in 20.103(b), insert the following provision:
* * * * *
136. Section 52.2202 is amended by revising the introductory
text; revising the date of the clause to read ``(JUL 1995)''; in
paragraph (c)(2) of the clause by removing the parenthetical ``(if it
exceeds the appropriate small purchase limitation in part 13 of the
Federal Acquisition Regulation)''; and removing the derivation line
following ``(End of clause)''. The revised text reads as follows:
52.2202 Notice of Total Labor Surplus Area SetAside.
As prescribed in 20.202, insert the following clause:
* * * * *
52.2203 [Amended]
137. Section 52.2203 is amended by revising the date of the
clause to read ``(JUL 1995)''; removing paragraph (a) and
redesignating paragraphs (b), (c), and (d) as (a), (b), and (c),
respectively; in newly designated paragraph (b) by removing the phrase
``paragraph (b) above'' and inserting ``paragraph (a) of this clause''
in its place; and removing the derivation lines following ``(End of
clause)''.
52.2224 [Amended]
138. In the clause at 52.2224, the date is revised to read ``(JUL
1995)'' and, in the first sentence of paragraph (e), following
``subcontracts'' the first time it appears, add the phrase ``,
exceeding $100,000,''.
139. Section 52.2235 is amended in the clause by revising the
date and paragraph (b) introductory text to read as follows:
52.2235 Certification Regarding A DrugFree Workplace.
* * * * *
Certification Regarding a DrugFree Workplace (Jul 1995)
* * * * *
(b) By submission of its offer, the offeror (other than an
individual) responding to a solicitation that is expected to exceed
the simplified acquisition threshold, certifies and agrees, that with
respect to all employees of the offeror to be employed under a
contract resulting from this solicitation, it willno later than 30
calendar days after contract award (unless a longer period is agreed
to in writing), for contracts of 30 calendar days or more performance
duration; or as soon as possible for contracts of less than 30
calendar days performance duration, but in any case, by a date prior
to when performance is expected to be completed
* * * * *
52.2271 [Amended]
140. In the clause at section 52.2271, revise the clause date to
read ``(JUL 1995)'' and in paragraph (b), remove ``$25,000'' after the
word ``exceed'' and insert ``the simplified acquisition threshold'' in
its place; remove the phrase ``under or over $25,000'' and insert
``including those at or below the simplified acquisition threshold''
in its place; and remove the derivation line after ``(End of
clause)''.
52.2273 [Amended]
141. In section 52.2273, Alternate III, revise the clause date to
read ``(JUL 1995)'' and remove ``$25,000'' and insert ``the simplified
acquisition threshold''.
142. The introductory paragraphs in sections 52.2362, 52.2363,
52.2366, 52.2368, 52.2369, 52.23610, 52.23611, 52.23612, 52.236
15, 52.23621, and 52.2435 are revised and the derivation lines are
removed following ``(End of clause)'' to read as follows:
52.2362 Differing Site Conditions.
As prescribed in 36.502, insert the following clause:
* * * * *
52.2363 Site Investigation and Conditions Affecting the
Work.
As prescribed in 36.503, insert the following clause:
* * * * *
52.2366 Superintendence by the Contractor.
As prescribed in 36.506, insert the following clause:
* * * * *
52.2368 Other Contracts.
As prescribed in 36.508, insert the following clause:
* * * * *
52.2369 Protection of Existing Vegetation, Structures, Equipment,
Utilities, and Improvements.
As prescribed in 36.509, insert the following clause:
* * * * *
52.23610 Operations and Storage Areas.
As prescribed in 36.510, insert the following clause:
* * * * *
52.23611 Use and Possession Prior to Completion.
As prescribed in 36.511, insert the following clause:
* * * * *
52.23612 Cleaning Up.
As prescribed in 36.512, insert the following clause:
* * * * *
52.23615 Schedules for Construction Contracts.
As prescribed in 36.515, insert the following clause:
* * * * *
52.23621 Specifications and Drawings for Construction.
As prescribed in 36.521, insert the following clause:
* * * * *
52.2435 Changes and Changed Conditions.
As prescribed in 43.205(e), insert the following clause:
* * * * *
52.2442 [Amended]
143. In section 52.2442, Alternate I, revise the parenthetical
date to read ``(JUL 1995)'' and, in paragraph (a)(2), remove the
phrase ``small purchase limitation'' and insert ``simplified
acquisition threshold'' in its place.
144. Section 52.2445 is amended by revising the introductory
text; removing paragraphs (a) and (b); and removing the derivation
lines following ``(End of clause)'' to read as follows:
52.2445 Competition in Subcontracting.
As prescribed in 44.204(e), insert the following clause:
* * * * *
145. The introductory paragraphs of sections 52.2461, 52.2467,
52.24612, 52.24616, 52.24623, 52.24624, and 52.24625 are revised
and the derivation lines following ``(End of clause)'' are removed to
read as follows:
52.2461 Contractor Inspection Requirements.
As prescribed in 46.301, insert the following clause:
* * * * *
52.2467 Inspection of Research and DevelopmentFixed
Price.
As prescribed in 46.307(a), insert the following clause:
* * * * *
52.24612 Inspection of Construction.
As prescribed in 46.312, insert the following clause:
* * * * *
52.24616 Responsibilities for Supplies.
As prescribed in 46.316, insert the following clause:
* * * * *
52.24623 Limitation of Liability.
As prescribed in 46.805, insert the following clause:
* * * * *
52.24624 Limitation of LiabilityHighValue
Items.
As prescribed in 46.805, insert the following clause:
* * * * *
52.24625 Limitation of LiabilityServices.
As prescribed in 46.805, insert the following clause:
* * * * *
146. Section 52.2471 is amended by adding introductory text, and
removing paragraphs (a) and (b) and the derivation lines following
``(End of clause)'' to read as follows:
52.2471 Commercial Bill of Lading Notations.
As prescribed in 47.1044, insert the following clause:
* * * * *
147. Section 52.24764 is amended by revising the introductory
text; in the clause heading, the date is revised to read ``(JUL
1995)''; in paragraph (d), remove the words ``small purchases as
described in 48 CFR 13'' and insert ``contracts at or below the
simplified acquisition threshold as described in FAR part 13'' in
their place; in paragraph (e)(1), remove the words ``Small purchases
as defined in 48 CFR 13'' and insert ``Contracts at or below the
simplified acquisition threshold as defined in FAR part 13'' in their
place; and remove the derivation line after ``(End of clause)''. The
revised text reads as follows:
52.24764 Preference for Privately Owned U.S.Flag Commercial
Vessels.
As prescribed in 47.507(a), insert the following clause:
* * * * *
148. In sections 52.2498, 52.2499, and 52.24910 the
introductory paragraphs are revised and the derivation lines following
``(End of clause)'' are removed to read as follows:
52.2498 Default (FixedPrice Supply and Service).
As prescribed in 49.504(a)(1), insert the following clause:
* * * * *
52.2499 Default (FixedPrice Research and Development).
As prescribed in 49.504(b), insert the following clause:
* * * * *
52.24910 Default (FixedPrice Construction).
As prescribed in 49.504(c)(1), insert the following clause:
* * * * *
PART 53FORMS
149. Section 53.213 is amended by revising the heading, the
introductory paragraph, and paragraphs (a), (c), (e) heading, and
(e)(1) to read as follows:
53.213 Simplified acquisition procedures (SF's 18, 30, 44, 1165, OF's
347, 348).
The following forms are prescribed as stated below for use in
simplified acquisition procedures, orders under existing contracts or
agreements, and orders from required sources of supplies and services:
(a) SF 18 (Rev. 6/95), Request for Quotations. SF 18 prescribed in
53.2151(a), shall be used in obtaining price, cost, delivery, and
related information from suppliers as specified in 13.107(a).
* * * * *
(c) SF 44 (Rev. 10/83), Purchase Order Invoice Voucher. SF 44 is
prescribed for use in simplified acquisition procedures, as specified
in 13.5053.
* * * * *
(e) OF 347 (6/95), Order for Supplies or Services, and OF 348 (10/
83), Order for Supplies or ServicesSchedule Continuation. * * *
(1) To accomplish acquisitions under simplified acquisition
procedures, as specified in 13.5051.
* * * * *
150. Section 53.2151 is amended by revising the introductory
paragraph; and in paragraph (a) by revising ``(REV 5/93)'' to read
``(REV 6/95)''. The revised text reads as follows:
53.2151 Solicitation and receipt of proposals and quotations.
The following forms are prescribed, as stated below, for use in
contracting by negotiation (except for construction,
architectengineer services, or acquisitions made using simplified
acquisition procedures):
* * * * *
53.2361 [Amended]
151. Section 53.2361 is amended in paragraph (e) by removing two
references to ``small purchase limitation'' and inserting ``simplified
acquisition threshold'' in both places; by adding ``6/95)''
immediately following the first reference to ``OF 347'' in paragraph
(f); and removing ``contracts of $10,000 or less'' and inserting
``contracts under the simplified acquisition threshold'' in its
place.
152. Section 53.30118 is revised to read as follows:
53.30118 SF 18 (REV 6/95), Request for Quotations.
153. Section 53.302347 is revised to read as follows:
53.302347 OF 347 (REV 6/95), Order for Supplies or Services.
