[Federal Register: June 18, 2004 (Volume 69, Number 117)]
[Rules and Regulations]
[Page 34231-34239]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn04-28]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 8, 38, and 53
[FAC 2001-24; FAR Case 1999-603; Item V]
RIN 9000-AJ63
Federal Acquisition Regulation; Federal Supply Schedules Services
and Blanket Purchase Agreements (BPAs)
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to incorporate
policies for services and to strengthen the procedures for establishing
Blanket Purchase Agreements under the Federal Supply Schedules.
DATES: Effective Date: July 19, 2004.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Ms. Linda Nelson, Procurement
Analyst, at (202) 501-1900. Please cite FAC 2001-24, FAR case 1999-603.
The TTY Federal Relay Number for further information is 1-800-877-8973.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 68 FR 19294, April 18, 2003, with request for comments.
Thirty-four respondents submitted public comments. A discussion of the
comments is provided below. The differences between the proposed rule
and final rule are addressed in the Councils' response to comments 1
through 9. General changes made to FAR Subpart 8.4 by this rulemaking
are provided in the list below. Of particular note, the rule--
Adds language to make it clear that the contracting
officer placing an order on another agency's behalf is responsible for
applying that agency's regulatory and statutory requirements; and that
the requiring activity is required to provide information on the
applicable regulatory and statutory requirements to the contracting
officer;
Adds new coverage on use of statements of work when
acquiring services from the schedules;
Requires that when an agency awards a task order requiring
a statement of work, that if the award is based on other than price
(best value), the contracting officer shall provide a brief explanation
of the basis for the award decision to any unsuccessful contractor that
requests such information;
Refines guidance regarding the use of Governmentwide BPAs;
Adds language to require the ordering activity to document
the results of its BPA review; and
Reinforces documentation requirements generally and adds
new guidance addressing the documentation of orders for services and
sole source orders.
In addition, the rule also--
Adds a definitions section;
Adds information regarding the Department of Veterans
Affairs delegated authority to establish medical supply schedules;
Adds language to clarify the differences between an
Authorized Federal Supply Schedules (FSS) Pricelist and a FSS
publication;
Adds additional information regarding e-Buy, GSA's
electronic quote system for the schedules program;
Clarifies that competition shall not be sought outside the
Federal Supply Schedules;
Adds language stating that the performance period of
Blanket Purchase Agreements (BPA) established under the schedules
program may cross option periods on the base contracts;
Adds language that encourages or reminds agencies that
they can seek a price reduction at any time, not just when an order
exceeds the maximum order threshold;
Adds additional language to allow for consideration of
socio-economic status when identifying the potential competitors for an
order;
Adds new coverage to allow agencies to make payment for
oral or written orders by any authorized means, including the
Governmentwide commercial purchase card;
Reserves the ordering procedures for Mandatory Use
Schedules section;
Clarifies the procedures for termination for cause and
convenience; and
Reorganizes and revises the subpart text for ease of use.
B. Summary and Discussion of Significant Public Comments
1. Comment: Ordering offices need not seek further competition.
Several respondents stated that the phrase
``Ordering offices shall not seek further competition'' is
confusing or misleading. In addition, the requirement that agencies
need not seek further competition, synopsize the requirement, or
consider small business programs when placing orders or issuing Blanket
Purchase Agreements under the schedule ordering procedures did not seem
fair.
Councils' response: Partially concur. The Councils determined that
although the language was clear, an additional explanation would be
added. The Councils clarified the language at 8.404(a) to indicate that
ordering activities need not seek competition outside of the Federal
Supply Schedules. Agencies must follow the procedures of Subpart 8.4 to
ensure compliance with the requirement for full and open competition as
implemented under the Multiple Award Schedules program.
2. Comment: Use of the term ``appropriate number.'' Concern was
raised regarding the use of the term ``appropriate number'' at FAR
8.404-1(d)(1) and FAR 8.404-2(c)(2)(ii) of the proposed rule. The term
``appropriate number'' pertains to the number of
[[Page 34232]]
contractors to be considered or contacted as part of the order
evaluation and placement process. In general, the respondents were
concerned that the language was too vague and did not provide
sufficient guidance as to the number of contractors that should be
considered or contacted. Further, there was a recommendation that ``an
appropriate number'' be changed to state a specific number or delete
the requirement.
Councils' response: The Councils partially concur. The rule
identifies factors that ordering activities might consider in
determining the appropriate number of additional schedule contractors
to consider. The intent is to leave it to the discretion of the
contracting officer to determine the number of additional contractors
to be considered or contacted. The recommendation that a specific
number of contractors be identified in place of an ``appropriate
number'' would unnecessarily limit the discretion of the contracting
officer. A final note, proposed rule FAR 8.404-1(d)(1) is renumbered in
the final rule as FAR 8.405-1(d)(1). Proposed rule FAR 8.404-
2(c)(2)(ii) is renumbered FAR 8.405-2(c)(3)(i) in the final rule.
3. Comment: Price reductions. A respondent commented that the
ordering procedures should be revised to remind agencies that price
reductions could be requested at any time for any size order.
Councils' response: Concur. Language was added to the final rule at
FAR 8.404(d) reminding agencies that they can ask for price reductions
prior to placing an order.
4. Comment: Quality Assurance Surveillance Plans. Several
respondents raised concerns regarding the guidance on the use of
Quality Assurance Surveillance Plans (QASP). The respondents felt that
QASP should be required for all service orders regardless of whether
the Statement of Work (SOW) is performance based or not. In addition,
another respondent indicated that the proposed rule contains two
different sections pertaining to QASP, which is redundant and confusing
(see 8.404-2(c)(1) and (c)(4) of the proposed rule).
Councils' response: The Councils generally agreed with the
observation that the mention of QASPs in two different places was, in
fact, redundant and confusing. As a result, the rule was revised to
include a reference to FAR Subpart 37.6. See FAR 8.405-2(b) of the
final rule. With regard to the suggestion that QASPs be required for
all service orders regardless of type, the Councils rejected this
suggestion. There is no FAR requirement that QASPs be developed for all
service orders. The FAR only requires the development of QASPs for
performance-based service orders.
5. Comment: Blanket Purchase Agreements. Several respondents
commented that the requirement for each agency to be a signatory when
establishing a multi-agency BPA was confusing.
Councils' response: The Councils agreed that the requirement for
each agency using a multi-agency BPA to be a signatory to the BPA was
unnecessary. The Councils revised the language to state that the
agencies and their requirements must be identified in the BPA. The
purpose of this change was two-fold; it eliminated the requirement that
each agency actually sign the BPA while at the same time ensuring that
the planned potential users of the BPA are reflected by including the
user agencies' estimated requirements. Additionally, including
information regarding the various agencies' estimated requirements
fosters better pricing and enhances competition.
The Councils also added a new paragraph at 8.405-3(c) regarding the
duration of BPAs. Over time, it has become apparent that additional
guidance was needed on the length of BPAs. The underlying schedule
contracts include a clause that allows BPAs to extend for the life of
the contract. The supplemental guidance in the final rule advises
agencies that a BPA should generally run for no longer than five years.
However, BPAs may exceed five years to meet agency program
requirements. The guidance further provides that a BPA can extend
beyond the current term of the contract so long as there are option
periods remaining on the underlying contract that, if exercised, will
cover the BPA's period of performance. The rule requires that an
ordering activity review the BPA at least once per year.
6. Comment: Small business. Several respondents raised concerns
regarding the ability of agencies to focus their consideration of
contractors and their competitions for orders on small businesses. In
particular, the Federal Office of Small Disadvantaged Business
Utilization (OSDBU) Directors Interagency Council commented that the
rule of two should apply to schedule orders and that all orders between
$2,500 and $100,000 be restricted to small businesses. In addition,
another respondent stated that the language regarding the applicability
of Part 19 of the FAR needed to be clarified. Another respondent
suggested that a 10 percent price evaluation advantage be given to
small businesses when agencies are placing orders.
Councils' response: The Councils do not concur with the comment
that the rule of two should apply to orders under the schedules
program. Further, the Councils do not concur with the suggestion that
all orders under $100,000 be set-aside for small business. The Councils
concluded that these suggestions would fundamentally alter the
schedules program in terms of the efficiency and effectiveness of the
overall program by increasing the administrative burden on agencies
without having demonstrated that the changes would, in fact, benefit
small business over the long term. In addition, the basic statutory
authority for the program provides that contracts and orders be open to
all sources. Creating a set-aside for all such orders would be
inconsistent with the program's basic operating authorities. In
addition, the Councils, for the same general reasons, do not agree with
the request for a 10 percent evaluation preference for small business.
However, the Councils did examine ways in which the rule could
foster even greater small business participation than that which
already exists. The Councils added language at FAR 8.405-5(b) that
provides that ``Ordering activities may consider socio-economic status
when identifying contractor(s) for consideration or competition for
award of an order or BPA.'' This language provides the flexibility for
agencies to conduct their market research focusing on small business
concerns and providing them greater opportunity to compete for orders.
The Councils also clarified the language at FAR 8.405-5(a)
regarding the applicability of FAR Part 19 and added language that
reminds agencies that when reporting an order for purposes of credit
towards their socio-economic goals, the ordering agency may only take
credit if the awardee meets the size standard that corresponds to the
work performed.
7. Comments: Documentation requirements. Several respondents
indicated that the documentation requirements at FAR 8.404-6 of the
proposed rule were confusing.
Councils' response: The Councils agreed with these comments and
revised the rule accordingly. The Councils moved the documentation for
services requiring a statement of work from the end of the section to
the beginning consolidating minimum documentation requirements for
services under FAR 8.405-7(a) and (b) of the final rule. In addition,
the sole source document
[[Page 34233]]
requirements were placed in a separate heading at FAR 8.405-6 of the
final rule. A final note, proposed rule FAR 8.404-6 is renumbered in
the final rule as FAR 8.405-7.
8. Comment: Inspection and acceptance. One respondent raised
significant concerns regarding the inspection and acceptance guidance
at FAR 8.405-3 of the proposed rule. The respondent commented that the
new provisions regarding the inspection rights of the Government for
services were overly broad and unduly burdensome. The provisions
provided in part that the Government had the right to inspect services
performed at any time and any place, including the contractor's
facilities. The respondent indicated that inspection and acceptance are
typically negotiated based on the type of service to be provided and
are not left so open-ended in the Government's favor.
Councils' response: The Councils essentially agreed with the
respondent's observations. As a result, the Councils revised the final
rule at FAR 8.406-2(b) to state that inspection shall be in accordance
with the contract and order terms. The order terms can be negotiated as
part of a Quality Assurance Surveillance Plan for an order.
9. Comment: Remedies for inadequate performance. One respondent
raised several concerns regarding the remedies for inadequate
performance guidance included in the proposed rule. In cases where a
contractor fails to correct earlier nonperformance of an order, FAR
8.405-4(c) of the proposed rule provided, in part, that the contracting
office could reduce the order price to reflect the contractor
nonperformance. The respondent commented that FAR 8.405-4(c) of the
proposed rule would inappropriately grant agencies the unilateral right
to reduce the order price without any mechanisms by which the
contracting officer determines the amount of any such price reduction
or any mechanism by which the contractor could challenge such a price
reduction.
Councils' response: The Councils agreed with this comment. The
Councils replaced the term ``inadequate performance'' in the heading
with ``nonconformance'' and revised the rule at FAR 8.406-3(a) to state
that the ordering activity shall take appropriate action for
nonconformance in accordance with the inspection and acceptance clause
of the contract as supplemented by the order.
10. Comment: Outline factors to consider for services. Section
8.404-1(c) outlines factors to consider when comparing schedule
contractors, which mainly apply to supplies. Recommend that a factor be
added for services.
Councils' response: Do not concur. The language of section 8.405-
1(c) is sufficient for purposes of a best value evaluation of basic
services such as repair, maintenance, and installation. Section 8.405-1
lists various factors as examples of what may be considered in
determining best value. The list is written to be inclusive and not
exclusive. Therefore, agencies have the discretion to consider any
other factor that may be important to their best value decision. In
addition, the ordering procedures for services requiring a statement of
work require that agencies include the evaluation criteria for
selection in the Request for Quotation. Under these ordering
procedures, the agencies have the discretion to develop the evaluation
criteria that will best meet their needs in determining best value for
their requirements.
11. Comment: Other direct costs. One respondent commented that the
ordering procedures should include guidance regarding the acquisition
and evaluation of other direct costs as part of an order.
Councils' response: The Councils agree that this is an area that
may need additional guidance. However, GSA is currently reviewing the
structure for other direct costs under its contracts and will be
developing additional training and guidance in this area for agencies.
Upon completion of this review, the Councils may revisit the issue as a
follow-up to the final rule.
12. Comment: Time-and-materials and labor-hour orders. Several
respondents raised concerns regarding the lack of clear guidance on the
use of time-and-materials or labor-hour orders. The general comment was
that the rule failed to fully address whether an order could be issued
on a time-and-material or labor-hour basis and the circumstances when
the use of such order types was appropriate. In addition, one
respondent raised a concern regarding a potential conflict between the
FAR and GSA ordering procedures regarding the type of contract that may
be used for commercial items. Yet another respondent commented that
time-and-materials contracts should not be used unless impossible to
estimate accurately the extent or duration of the work or anticipate
costs reasonably when placing the order.
Councils' response: The Councils agree with the comments that this
area requires additional guidance. Currently, the Councils are working
on a number of FAR cases to implement various sections of the Services
Acquisition Reform Act of 2003 (Title XIV of Public Law 108-136). The
rule resulting from one of these FAR cases will implement Section 1432
(Authorization of additional commercial contracts types), which
addresses the use of time-and-material and labor-hour contracts for
commercial services. When Section 1432 has been implemented, the
Councils will address the time-and-materials/labor-hour issue as it
pertains to the Multiple Award Schedules Program as a follow-up to the
final rule.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to
this final rule. The Councils prepared a Final Regulatory Flexibility
Analysis (FRFA), and it reads as follows:
This Final Regulatory Flexibility Analysis has been prepared in
accordance with 5 U.S.C. 604.
1. Statement of need for, and objectives of, the rule. The
Multiple Award Schedules (MAS) program, directed and managed by the
General Services Administration (GSA), provides Federal agencies
with a simplified process for obtaining commercial supplies and
services at prices associated with volume buying. For much of its
history, the MAS focused on the sale of products. In recent years,
however, GSA has sought to facilitate broad access to service
contractors. This general transformation of the schedules program
has coincided with a trend in Federal procurement towards acquiring
managed solutions from the marketplace. The amount of services
acquisition from the MAS has grown steadily as agencies increasingly
turn to schedule contractors to meet their needs.
To assist its customers, GSA developed ``special ordering
procedures'' that address the acquisition of services. However,
because FAR Subpart 8.4 has remained primarily geared towards
products, agencies have been inconsistent in adhering to certain
basic acquisition requirements when buying services off the MAS,
such as in their use of statements of work, effective pricing of
orders, application of competition, and proper documentation of
award decisions.
The purpose of the rule is to significantly improve the
application of acquisition basics on MAS purchases for services and
reinforce sound MAS practices generally. To achieve this result, the
rule is amending the Federal Acquisition Regulation to incorporate
policies for services and to strengthen the procedures for
establishing Blanket Purchase Agreements under the Federal Supply
Schedules.
2. Summary of significant issues raised by the public comments
in response to the Initial Regulatory Flexibility Analysis (IRFA),
[[Page 34234]]
a summary of the assessment of the agency of such issues, and a
statement of any changes made in the proposed rule as a result of
such comments. An Initial Regulatory Flexibility Analysis was not
performed because the proposed rule did not have significant
economic impact on a substantial number of small entities. Thirty-
four respondents submitted public comments in response to the
proposed rule. None of the comments received identified or addressed
any adverse impact on small businesses.
However, the final rule does makes an amendment to the FAR that
could foster even greater small business participation than that
which already exists. The amendment provides the flexibility for
agencies to conduct their market research focusing on small business
concerns and providing them greater opportunity to compete for
orders.
The rule also reminds agencies that when reporting an order for
purposes of credit towards their socio-economic goals, the ordering
agency may only take credit if the awardee meets the size standard
that corresponds to the work performed. This final rule is intended
to be beneficial in expanding small business access to an increased
number of orders. We see no negative impact on small businesses.
3. Description of, and an estimate of the number of, small
entities to which the rule will apply or an explanation of why no
such estimate is available. This rule will apply to all large and
small business concerns under the Federal Supply Schedule Program.
Although the rule pertains to internal Government procedures, it may
increase the number of orders for supplies and services placed by
the Government with small business concerns. The net effect of the
rule is unknown at this time.
As of fiscal year 2003, according to statistical data maintained
by GSA's Federal Supply Service, out of a population of 14,169
national scope schedule contracts, 11,300 Federal Supply Schedule
contracts are in effect with small business concerns. Approximately
80 percent of the schedule contractors are small business concerns.
In fiscal year 2003, small business schedule contractors received
approximately $9 billion, or 36 percent of total schedule sales.
Whereas, in 2002, 8,963 small businesses held contracts out of a
population of 11,426 national scope schedule contracts. Small
business sales in 2002 were $7.2 billion, or 34 percent of total
schedule sales. The number of small businesses holding Federal
Supply Schedules increased 26 percent and sales increased 26.4
percent.
The procedures give small business contractors the opportunity
to fairly compete within the broader universe of schedule
contractors. These changes ensure that ordering activities have the
broad discretion and effective and flexible business solutions to
meet agency requirements.
4. Description of the projected reporting, recordkeeping, and
other compliance requirements of the rule, including an estimate of
the classes of small entities which will be subject to the
requirement and the type of professional skills necessary for
preparation of the report or record. There are no projected
reporting, recordkeeping, or other compliance requirements.
5. Description of steps the agency has taken to minimize
significant economic impact on small entities consistent with the
stated objectives of applicable statutes, including a statement of
the factual, policy, and legal reasons for selecting the alternative
adopted in the final rule and why each of the other significant
alternatives to the rule considered by the agency was rejected.
There are no known significant alternatives that will accomplish the
objectives of the rule. No alternatives were proposed during the
public comment period. The impact of the rule is unknown at this
time. The rule could benefit small business concerns holding
schedule contracts by permitting those concerns to compete for
awards that offer products and services that meet the needs of the
requiring agency.
The FAR Secretariat has submitted a copy of the FRFA to the Chief
Counsel for Advocacy of the Small Business Administration.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Parts 8, 38, and 53
Government procurement.
Dated: June 10, 2004.
Ralph De Stefano,
Acting Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 8, 38, and 53 as set
forth below:
0
1. The authority citation for 48 CFR parts 8, 38, and 53 is revised to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
0
2. Revise Subpart 8.4 to read as follows:
Subpart 8.4--Federal Supply Schedules
Sec.
8.401 Definitions.
8.402 General.
8.403 Applicability.
8.404 Use of Federal Supply Schedules.
8.405 Ordering procedures for Federal Supply Schedules.
8.405-1 Ordering procedures for supplies, and services not requiring
a statement of work.
8.405-2 Ordering procedures for services requiring a statement of
work.
8.405-3 Blanket purchase agreements (BPAs).
8.405-4 Price reductions.
8.405-5 Small business.
8.405-6 Sole source justification and approval.
8.405-7 Documentation.
8.405-8 Payment.
8.406 Ordering activity responsibilities.
8.406-1 Order placement.
8.406-2 Inspection and acceptance.
8.406-3 Remedies for nonconformance.
8.406-4 Termination for cause.
8.406-5 Termination for the Government's convenience.
8.406-6 Disputes.
8.401 Definitions.
As used in this subpart--
Ordering activity means an activity that is authorized to place
orders, or establish blanket purchase agreements (BPA), against the
General Services Administration's (GSA) Multiple Award Schedule
contracts. A list of eligible ordering activities is available at
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/schedules (click ``For Customers Ordering from
Schedules'' and then ``Eligibility to Use GSA Sources'').
Multiple Award Schedule (MAS) means contracts awarded by GSA or the
Department of Veterans Affairs (VA) for similar or comparable supplies,
or services, established with more than one supplier, at varying
prices. The primary statutory authority for the MAS program is derived
from both Title III of the Administrative Services Act of 1949 (41
U.S.C. 251, et seq.) and Title 40 U.S.C., Public Buildings, Property
and Works.
Requiring agency means the agency needing the supplies or services.
Schedules e-Library means the on-line source for GSA and VA Federal
Supply Schedule contract award information. Schedules e-Library may be
accessed at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/elibrary.
Special Item Number (SIN) means a group of generically similar (but
not identical) supplies or services that are intended to serve the same
general purpose or function.
8.402 General.
(a) The Federal Supply Schedule program is also known as the GSA
Schedules Program or the Multiple Award Schedule Program. The Federal
Supply Schedule program is directed and managed by GSA and provides
Federal agencies (see 8.002) with a simplified process for obtaining
commercial supplies and services at prices associated with volume
buying. Indefinite delivery contracts are awarded to provide supplies
and services at stated prices for given periods of time. GSA may
delegate certain responsibilities to other agencies (e.g., GSA has
delegated authority to the VA to procure medical supplies under the VA
Federal Supply Schedules program). Orders issued under the VA
[[Page 34235]]
Federal Supply Schedule program are covered by this subpart.
Additionally, the Department of Defense (DoD) manages similar systems
of schedule-type contracting for military items; however, DoD systems
are not covered by this subpart.
(b) GSA schedule contracts require all schedule contractors to
publish an ``Authorized Federal Supply Schedule Pricelist''
(pricelist). The pricelist contains all supplies and services offered
by a schedule contractor. In addition, each pricelist contains the
pricing and the terms and conditions pertaining to each Special Item
Number that is on schedule. The schedule contractor is required to
provide one copy of its pricelist to any ordering activity upon
request. Also, a copy of the pricelist may be obtained from the Federal
Supply Service by submitting a written e-mail request to
schedules.infocenter@gsa.gov or by telephone at 1-800-488-3111. This
subpart, together with the pricelists, contain necessary information
for placing delivery or task orders with schedule contractors. In
addition, the GSA schedule contracting office issues Federal Supply
Schedules publications that contain a general overview of the Federal
Supply Schedule (FSS) program and address pertinent topics. Ordering
activities may request copies of schedules publications by contacting
the Centralized Mailing List Service through the Internet at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/cmls
, submitting written e-mail requests to CMLS@gsa.gov;
or by completing GSA Form 457, FSS Publications Mailing List
Application, and mailing it to the GSA Centralized Mailing List Service
(7SM), P.O. Box 6477, Fort Worth, TX 76115. Copies of GSA Form 457 may
also be obtained from the above-referenced points of contact.
(c)(1) GSA offers an on-line shopping service called ``GSA
Advantage!'' through which ordering activities may place orders against
Schedules. (Ordering activities may also use GSA Advantage! to place
orders through GSA's Global Supply System, a GSA wholesale supply
source, formerly known as ``GSA Stock'' or the ``Customer Supply
Center.'' FAR Subpart 8.4 is not applicable to orders placed through
the GSA Global Supply System.) Ordering activities may access GSA
Advantage! through the GSA Federal Supply Service Home Page (http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/fss
) or the GSA Federal Supply Schedule Home Page at http:/
/http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/schedules.
(2) GSA Advantage! enables ordering activities to search specific
information (i.e., national stock number, part number, common name),
review delivery options, place orders directly with Schedule
contractors and pay for orders using the Governmentwide commercial
purchase card.
(d) e-Buy, GSA's electronic Request for Quotation (RFQ) system, is
a part of a suite of on-line tools which complement GSA Advantage!. E-
Buy allows ordering activities to post requirements, obtain quotes, and
issue orders electronically. Ordering activities may access e-Buy at
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.ebuy.gsa.gov. For more information or assistance on either
GSA Advantage! or e-Buy, contact GSA at Internet e-mail address
gsa.advantage@gsa.gov.
(e) For more information or assistance regarding the Federal Supply
Schedule Program, review the following Web site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/schedules.
Additionally, for on-line training courses regarding the
Schedules Program, review the following Web site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://fsstraining.gsa.gov
.
(f) For administrative convenience, an ordering activity
contracting officer may add items not on the Federal Supply Schedule
(also referred to as open market items) to a Federal Supply Schedule
blanket purchase agreement (BPA) or an individual task or delivery
order only if--
(1) All applicable acquisition regulations pertaining to the
purchase of the items not on the Federal Supply Schedule have been
followed (e.g., publicizing (Part 5), competition requirements (Part
6), acquisition of commercial items (Part 12), contracting methods
(Parts 13, 14, and 15), and small business programs (Part 19));
(2) The ordering activity contracting officer has determined the
price for the items not on the Federal Supply Schedule is fair and
reasonable;
(3) The items are clearly labeled on the order as items not on the
Federal Supply Schedule; and
(4) All clauses applicable to items not on the Federal Supply
Schedule are included in the order.
8.403 Applicability.
(a) Procedures in this subpart apply to--
(1) Individual orders for supplies or services placed against
Federal Supply Schedules contracts; and
(2) BPAs established against Federal Supply Schedule contracts.
(b) GSA may establish special ordering procedures for a particular
schedule. In this case, that schedule will specify those special
ordering procedures. Unless otherwise noted, special ordering
procedures established for a Federal Supply Schedule take precedence
over the procedures in 8.405.
8.404 Use of Federal Supply Schedules.
(a) General. Parts 13 (except 13.303-2(c)(3)), 14, 15, and 19
(except for the requirement at 19.202-1(e)(1)(iii)) do not apply to
BPAs or orders placed against Federal Supply Schedules contracts (but
see 8.405-5). BPAs and orders placed against a MAS, using the
procedures in this subpart, are considered to be issued using full and
open competition (see 6.102(d)(3)). Therefore, when establishing a BPA
(as authorized by 13.303-2(c)(3)), or placing orders under Federal
Supply Schedule contracts using the procedures of 8.405, ordering
activities shall not seek competition outside of the Federal Supply
Schedules or synopsize the requirement.
(b) The contracting officer, when placing an order or establishing
a BPA, is responsible for applying the regulatory and statutory
requirements applicable to the agency for which the order is placed or
the BPA is established. The requiring agency shall provide the
information on the applicable regulatory and statutory requirements to
the contracting officer responsible for placing the order.
(c) Acquisition planning. Orders placed under a Federal Supply
Schedule contract--
(1) Are not exempt from the development of acquisition plans (see
subpart 7.1), and an information technology acquisition strategy (see
Part 39);
(2) Must comply with all FAR requirements for a bundled contract
when the order meets the definition of ``bundled contract'' (see
2.101(b)); and
(3) Must, whether placed by the requiring agency, or on behalf of
the requiring agency, be consistent with the requiring agency's
statutory and regulatory requirements applicable to the acquisition of
the supply or service.
(d) Pricing. Supplies offered on the schedule are listed at fixed
prices. Services offered on the schedule are priced either at hourly
rates, or at a fixed price for performance of a specific task (e.g.,
installation, maintenance, and repair). GSA has already determined the
prices of supplies and fixed-price services, and rates for services
offered at hourly rates, under schedule contracts to be fair and
reasonable. Therefore, ordering activities are not required to make a
separate determination of fair and reasonable pricing, except for a
price evaluation as required by 8.405-2(d). By placing an order against
a schedule contract using the procedures in 8.405, the ordering
activity has
[[Page 34236]]
concluded that the order represents the best value (as defined in FAR
2.101) and results in the lowest overall cost alternative (considering
price, special features, administrative costs, etc.) to meet the
Government's needs. Although GSA has already negotiated fair and
reasonable pricing, ordering activities may seek additional discounts
before placing an order (see 8.405-4).
8.405 Ordering procedures for Federal Supply Schedules.
Ordering activities shall use the ordering procedures of this
section when placing an order or establishing a BPA for supplies or
services. The procedures in this section apply to all schedules.
8.405-1 Ordering procedures for supplies, and services not requiring a
statement of work.
(a) Ordering activities shall use the procedures of this subsection
when ordering supplies and services that are listed in the schedules
contracts at a fixed price for the performance of a specific task,
where a statement of work is not required (e.g., installation,
maintenance, and repair).
(b) Orders at or below the micro-purchase threshold. Ordering
activities may place orders at, or below, the micro-purchase threshold
with any Federal Supply Schedule contractor that can meet the agency's
needs. Although not required to solicit from a specific number of
schedule contractors, ordering activities should attempt to distribute
orders among contractors.
(c) Orders exceeding the micro-purchase threshold but not exceeding
the maximum order threshold. Ordering activities shall place orders
with the schedule contractor that can provide the supply or service
that represents the best value. Before placing an order, an ordering
activity shall consider reasonably available information about the
supply or service offered under MAS contracts by surveying the GSA
Advantage! on-line shopping service, or by reviewing the catalogs or
pricelists of at least three schedule contractors (see 8.405-5). In
addition to price, when determining best value, the ordering activity
may consider, among other factors, the following:
(1) Past performance.
(2) Special features of the supply or service required for
effective program performance.
(3) Trade-in considerations.
(4) Probable life of the item selected as compared with that of a
comparable item.
(5) Warranty considerations.
(6) Maintenance availability.
(7) Environmental and energy efficiency considerations.
(8) Delivery terms.
(d) Orders exceeding the maximum order threshold. Each schedule
contract has a maximum order threshold established on a SIN-by-SIN
basis. Although a price reduction may be sought at any time, this
threshold represents the point where, given the dollar value of the
potential order, the ordering activity shall seek a price reduction. In
addition to following the procedures in paragraph (c) of this section
and before placing an order that exceeds the maximum order threshold or
establishing a BPA (see 8.405-3), ordering activities shall--
(1) Review the pricelists of additional schedule contractors (the
GSA Advantage! on-line shopping service can be used to facilitate this
review);
(2) Based upon the initial evaluation, seek price reductions from
the schedule contractor(s) considered to offer the best value (see
8.404(d)); and
(3) After seeking price reductions (see 8.405-4), place the order
with the schedule contractor that provides the best value. If further
price reductions are not offered, an order may still be placed.
8.405-2 Ordering procedures for services requiring a statement of
work.
(a) General. Ordering activities shall use the procedures in this
subsection when ordering services priced at hourly rates as established
by the schedule contracts. The applicable services will be identified
in the Federal Supply Schedule publications and the contractor's
pricelists.
(b) Statements of Work (SOWs). All Statements of Work shall include
the work to be performed; location of work; period of performance;
deliverable schedule; applicable performance standards; and any special
requirements (e.g., security clearances, travel, special knowledge). To
the maximum extent practicable, agency requirements shall be
performance-based statements (see subpart 37.6).
(c) Request for Quotation procedures. The ordering activity must
provide the Request for Quotation (RFQ), which includes the statement
of work and evaluation criteria (e.g., experience and past
performance), to schedule contractors that offer services that will
meet the agency's needs. The RFQ may be posted to GSA's electronic RFQ
system, e-Buy (see 8.402(d)).
(1) Orders at, or below, the micro-purchase threshold. Ordering
activities may place orders at, or below, the micro-purchase threshold
with any Federal Supply Schedule contractor that can meet the agency's
needs. The ordering activity should attempt to distribute orders among
contractors.
(2) For orders exceeding the micro-purchase threshold, but not
exceeding the maximum order threshold. (i) The ordering activity shall
develop a statement of work, in accordance with 8.405-2(b).
(ii) The ordering activity shall provide the RFQ (including the
statement of work and evaluation criteria) to at least three schedule
contractors that offer services that will meet the agency's needs.
(iii) The ordering activity should request that contractors submit
firm-fixed prices to perform the services identified in the statement
of work.
(3) For proposed orders exceeding the maximum order threshold or
when establishing a BPA. In addition to meeting the requirements of
8.405-2(c)(2), the ordering activity shall--
(i) Provide the RFQ (including the statement of work and evaluation
criteria) to additional schedule contractors that offer services that
will meet the needs of the ordering activity. When determining the
appropriate number of additional schedule contractors, the ordering
activity may consider, among other factors, the following:
(A) The complexity, scope and estimated value of the requirement.
(B) The market search results.
(ii) Seek price reductions.
(4) The ordering activity shall provide the RFQ (including the
statement of work and the evaluation criteria) to any schedule
contractor who requests a copy of it.
(d) Evaluation. The ordering activity shall evaluate all responses
received using the evaluation criteria provided to the schedule
contractors. The ordering activity is responsible for considering the
level of effort and the mix of labor proposed to perform a specific
task being ordered, and for determining that the total price is
reasonable. Place the order, or establish the BPA, with the schedule
contractor that represents the best value (see 8.404(d)). After award,
ordering activities should provide timely notification to unsuccessful
offerors. If an unsuccessful offeror requests information on an award
that was based on factors other than price alone, a brief explanation
of the basis for the award decision shall be provided.
8.405-3 Blanket purchase agreements (BPAs).
(a)(1) Establishment. Ordering activities may establish BPAs under
any schedule contract to fill repetitive needs for supplies or
services. BPAs may be
[[Page 34237]]
established with one or more schedule contractors. The number of BPAs
to be established is within the discretion of the ordering activity
establishing the BPAs and should be based on a strategy that is
expected to maximize the effectiveness of the BPA(s). In determining
how many BPAs to establish, consider--
(i) The scope and complexity of the requirement(s);
(ii) The need to periodically compare multiple technical approaches
or prices;
(iii) The administrative costs of BPAs; and
(iv) The technical qualifications of the schedule contractor(s).
(2) Establishment of a single BPA, or multiple BPAs, shall be made
using the same procedures outlined in 8.405-1 or 8.405-2. BPAs shall
address the frequency of ordering, invoicing, discounts, requirements
(e.g. estimated quantities, work to be performed), delivery locations,
and time.
(3) When establishing multiple BPAs, the ordering activity shall
specify the procedures for placing orders under the BPAs.
(4) Establishment of a multi-agency BPA against a Federal Supply
Schedule contract is permitted if the multi-agency BPA identifies the
participating agencies and their estimated requirements at the time the
BPA is established.
(b) Ordering from BPAs--(1) Single BPA. If the ordering activity
establishes one BPA, authorized users may place the order directly
under the established BPA when the need for the supply or service
arises.
(2) Multiple BPAs. If the ordering activity establishes multiple
BPAs, before placing an order exceeding the micro-purchase threshold,
the ordering activity shall--
(i) Forward the requirement, or statement of work and the
evaluation criteria, to an appropriate additional number of BPA
holders, as established in the BPA ordering procedures; and
(ii) Evaluate the responses received, make a best value
determination (see 8.404(d)), and place the order with the BPA holder
that represents the best value.
(3) BPAs for hourly rate services. If the BPA is for hourly rate
services, the ordering activity shall develop a statement of work for
requirements covered by the BPA. All orders under the BPA shall specify
a price for the performance of the tasks identified in the statement of
work.
(c) Duration of BPAs. BPAs generally should not exceed five years
in length, but may do so to meet program requirements. Contractors may
be awarded BPAs that extend beyond the current term of their GSA
Schedule contract, so long as there are option periods in their GSA
Schedule contract that, if exercised, will cover the BPA's period of
performance.
(d) Review of BPAs. (1) The ordering activity that established the
BPA shall review it at least once a year to determine whether--
(i) The schedule contract, upon which the BPA was established, is
still in effect;
(ii) The BPA still represents the best value (see 8.404(d)); and
(iii) Estimated quantities/amounts have been exceeded and
additional price reductions can be obtained.
(2) The ordering activity shall document the results of its review.
8.405-4 Price reductions.
In addition to seeking price reductions before placing an order
exceeding the maximum order threshold (see 8.405-1(d)), or in
conjunction with the annual BPA review, there may be other reasons to
request a price reduction. For example, ordering activities should seek
a price reduction when the supply or service is available elsewhere at
a lower price, or when establishing a BPA to fill recurring
requirements. The potential volume of orders under BPAs, regardless of
the size of individual orders, offers the opportunity to secure greater
discounts. Schedule contractors are not required to pass on to all
schedule users a price reduction extended only to an individual
ordering activity for a specific order.
8.405-5 Small business.
(a) Although the mandatory preference programs of Part 19 do not
apply, orders placed against schedule contracts may be credited toward
the ordering activity's small business goals. For purposes of reporting
an order placed with a small business schedule contractor, an ordering
agency may only take credit if the awardee meets a size standard that
corresponds to the work performed. Ordering activities should rely on
the small business representations made by schedule contractors at the
contract level.
(b) Ordering activities may consider socio-economic status when
identifying contractor(s) for consideration or competition for award of
an order or BPA. At a minimum, ordering activities should consider, if
available, at least one small business, veteran-owned small business,
service disabled veteran-owned small business, HUBZone small business,
women-owned small business, or small disadvantaged business schedule
contractor(s). GSA Advantage! and Schedules e-Library at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/fss
contain information on the small business
representations of Schedule contractors.
(c) For orders exceeding the micro-purchase threshold, ordering
activities should give preference to the items of small business
concerns when two or more items at the same delivered price will
satisfy the requirement.
8.405-6 Sole source justification and approval.
Orders placed under Federal Supply Schedules are exempt from the
requirements in Part 6. However, ordering activities shall--
(a) Procure sole source requirements under this subpart only if the
need to do so is justified in writing and approved at the levels
specified in paragraph (b) of this section; and
(b) Prepare sole source justifications using the information at
6.303-2, modified to cite that the acquisition is conducted under the
authority of Section 201 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 501).
(1) For proposed orders exceeding the micro-purchase threshold, but
not exceeding the simplified acquisition threshold, the ordering
activity contracting officer may solicit from one source, if the
ordering activity contracting officer determines that the circumstances
deem only one source is reasonably available (e.g., urgency, exclusive
licensing agreement, industrial mobilization). The contracting officer
shall approve the justification unless a higher approval level is
established in accordance with agency procedures.
(2) For proposed orders exceeding the simplified acquisition
threshold, but not exceeding $500,000, the ordering activity
contracting officer's certification that the justification is accurate
and complete to the best of the ordering activity contracting officer's
knowledge and belief will serve as approval, unless a higher approval
level is established in accordance with agency procedures.
(3) For a proposed order exceeding $500,000, but not exceeding $10
million, the competition advocate for the procuring activity,
designated pursuant to 6.501, or an official described in 6.304(a)(3)
or (a)(4) must approve the justification. This authority is not
delegable.
(4) For a proposed order exceeding $10 million but not exceeding
$50 million, the head of the procuring activity or an official
described in 6.304(a)(3)(i) or (ii) shall approve the
[[Page 34238]]
justification. This authority is not delegable.
(5) For a proposed order exceeding $50 million, the official
described in 6.304(a)(4) shall approve the justification. This
authority is not delegable, except as provided in 6.304(a)(4).
8.405-7 Documentation.
(a) Minimum documentation. The ordering activity shall document--
(1) The contracts considered, noting the contractor from which the
supply or service was purchased;
(2) A description of the supply or service purchased;
(3) The amount paid; and
(4) If applicable, the circumstances and rationale for restricting
consideration of schedule contractors to fewer than that required in
8.405-1 or 8.405-2 (see 8.405-6). Justifications for such restrictions
may include--
(i) Only one source is capable of responding due to the unique or
specialized nature of the work;
(ii) The new work is a logical follow-on to an existing order
provided that the original order was placed in accordance with 8.405-1
or 8.405-2 (excluding orders placed previously under sole source
requirements);
(iii) The item is peculiar to one manufacturer. A brand name item,
available on various schedule contracts, is an item peculiar to one
manufacturer; or
(iv) An urgent and compelling need exists and following the
ordering procedures would result in unacceptable delays.
(b) Additional documentation for services. In addition to the
documentation requirements of paragraph (a) of this section, when
acquiring services using the procedures at 8.405-2, the ordering office
shall also document--
(1) The evaluation methodology used in selecting the contractor to
receive the order;
(2) The rationale for any tradeoffs in making the selection;
(3) The price reasonableness determination required by 8.405-2(d);
and
(4) The rationale for using other than--
(i) A firm-fixed price order; or
(ii) A performance-based order.
8.405-8 Payment.
Agencies may make payments for oral or written orders by any
authorized means, including the Governmentwide commercial purchase
card.
8.406 Ordering activity responsibilities.
8.406-1 Order placement.
Ordering activities may place orders orally (except for services
requiring a statement of work (SOW)) or use Optional Form 347, an
agency-prescribed form, or an established electronic communications
format to order supplies or services from schedule contracts. The
ordering activity shall place an order directly with the contractor in
accordance with the terms and conditions of the pricelists (see
8.402(b)). Prior to placement of the order, the ordering activity shall
ensure that the regulatory and statutory requirements of the requiring
agency have been applied. Orders shall include the following
information in addition to any information required by the schedule
contract:
(a) Complete shipping and billing addresses.
(b) Contract number and date.
(c) Agency order number.
(d) F.o.b. delivery point; i.e., origin or destination.
(e) Discount terms.
(f) Delivery time or period of performance.
(g) Special item number or national stock number.
(h) A statement of work for services, when required, or a brief,
complete description of each item (when ordering by model number,
features and options such as color, finish, and electrical
characteristics, if available, must be specified).
(i) Quantity and any variation in quantity.
(j) Number of units.
(k) Unit price.
(l) Total price of order.
(m) Points of inspection and acceptance.
(n) Other pertinent data; e.g., delivery instructions or receiving
hours and size-of-truck limitation.
(o) Marking requirements.
(p) Level of preservation, packaging, and packing.
8.406-2 Inspection and acceptance.
(a) Supplies. (1) Consignees shall inspect supplies at destination
except when--
(i) The schedule contract indicates that mandatory source
inspection is required by the schedule contracting agency; or
(ii) A schedule item is covered by a product description, and the
ordering activity determines that the schedule contracting agency's
inspection assistance is needed (based on the ordering volume, the
complexity of the supplies, or the past performance of the supplier).
(2) When the schedule contracting agency performs the inspection,
the ordering activity will provide two copies of the order specifying
source inspection to the schedule contracting agency. The schedule
contracting agency will notify the ordering activity of acceptance or
rejection of the supplies.
(3) Material inspected at source by the schedule contracting
agency, and determined to conform with the product description of the
schedule, shall not be reinspected for the same purpose. The consignee
shall limit inspection to kind, count, and condition on receipt.
(4) Unless otherwise provided in the schedule contract, acceptance
is conclusive, except as regards latent defects, fraud, or such gross
mistakes as amount to fraud.
(b) Services. The ordering activity has the right to inspect all
services in accordance with the contract requirements and as called for
by the order. The ordering activity shall perform inspections and tests
as specified in the order's quality assurance surveillance plan in a
manner that will not unduly delay the work.
8.406-3 Remedies for nonconformance.
(a) If a contractor delivers a supply or service, but it does not
conform to the order requirements, the ordering activity shall take
appropriate action in accordance with the inspection and acceptance
clause of the contract, as supplemented by the order.
(b) If the contractor fails to perform an order, or take
appropriate corrective action, the ordering activity may terminate the
order for cause or modify the order to establish a new delivery date
(after obtaining consideration, as appropriate). Ordering activities
shall follow the procedures at 8.406-4 when terminating an order for
cause.
8.406-4 Termination for cause.
(a)(1) An ordering activity contracting officer may terminate
individual orders for cause. Termination for cause shall comply with
FAR 12.403, and may include charging the contractor with excess costs
resulting from repurchase.
(2) The schedule contracting office shall be notified of all
instances where an ordering activity contracting officer has terminated
for cause an individual order to a Federal Supply Schedule contractor,
or if fraud is suspected.
(b) If the contractor asserts that the failure was excusable, the
ordering activity contracting officer shall follow the procedures at
8.406-6, as appropriate.
(c) If the contractor is charged excess costs, the following apply:
[[Page 34239]]
(1) Any repurchase shall be made at as low a price as reasonable,
considering the quality required by the Government, delivery
requirement, and administrative expenses. Copies of all repurchase
orders, except the copy furnished to the contractor or any other
commercial concern, shall include the notation:
Repurchase against the account of -------- [insert contractor's
name] under Order -------- [insert number] under Contract --------
[insert number].
(2) When excess costs are anticipated, the ordering activity may
withhold funds due the contractor as offset security. Ordering
activities shall minimize excess costs to be charged against the
contractor and collect or set-off any excess costs owed.
(3) If an ordering activity is unable to collect excess repurchase
costs, it shall notify the schedule contracting office after final
payment to the contractor.
(i) The notice shall include the following information about the
terminated order:
(A) Name and address of the contractor.
(B) Schedule, contract, and order number.
(C) National stock or special item number(s), and a brief
description of the item(s).
(D) Cost of schedule items involved.
(E) Excess costs to be collected.
(F) Other pertinent data.
(ii) The notice shall also include the following information about
the purchase contract:
(A) Name and address of the contractor.
(B) Item repurchase cost.
(C) Repurchase order number and date of payment.
(D) Contract number, if any.
(E) Other pertinent data.
(d) Only the schedule contracting officer may modify the contract
to terminate for cause any, or all, supplies or services covered by the
schedule contract. If the schedule contracting officer has terminated
any supplies or services covered by the schedule contract, no further
orders may be placed for those items. Orders placed prior to
termination for cause shall be fulfilled by the contractor, unless
terminated for the convenience of the Government by the ordering
activity contracting officer.
8.406-5 Termination for the Government's convenience.
(a) An ordering activity contracting officer may terminate
individual orders for the Government's convenience. Terminations for
the Government's convenience shall comply with FAR 12.403.
(b) Before terminating orders for the Government's convenience, the
ordering activity contracting officer shall endeavor to enter into a
``no cost'' settlement agreement with the contractor.
(c) Only the schedule contracting officer may modify the schedule
contract to terminate any, or all, supplies or services covered by the
schedule contract for the Government's convenience.
8.406-6 Disputes.
(a) Disputes pertaining to the performance of orders under a
schedule contract. (1) Under the Disputes clause of the schedule
contract, the ordering activity contracting officer may--
(i) Issue final decisions on disputes arising from performance of
the order (but see paragraph (b) of this section); or
(ii) Refer the dispute to the schedule contracting officer.
(2) The ordering activity contracting officer shall notify the
schedule contracting officer promptly of any final decision.
(b) Disputes pertaining to the terms and conditions of schedule
contracts. The ordering activity contracting officer shall refer all
disputes that relate to the contract terms and conditions to the
schedule contracting officer for resolution under the Disputes clause
of the contract and notify the schedule contractor of the referral.
(c) Appeals. Contractors may appeal final decisions to either the
Board of Contract Appeals servicing the agency that issued the final
decision or the U.S. Court of Federal Claims.
(d) Alternative dispute resolution. The contracting officer should
use the alternative dispute resolution (ADR) procedures, to the maximum
extent practicable (see 33.204 and 33.214).
PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING
0
3. Revise section 38.000 to read as follows:
38.000 Scope of part.
This part prescribes policies and procedures for contracting for
supplies and services under the Federal Supply Schedule program, which
is directed and managed by the General Services Administration (see
Subpart 8.4, Federal Supply Schedules, for additional information). GSA
may delegate certain responsibilities to other agencies (e.g., GSA has
delegated authority to the Department of Veterans Affairs (VA) to
procure medical supplies under the VA Federal Supply Schedules
Program). The VA Federal Supply Schedules Program is covered by this
subpart. Additionally, the Department of Defense manages a similar
system of schedule contracting for military items; however, the
Department of Defense systems are not a part of the Federal Supply
Schedule program.
0
4. Amend section 38.101 by revising paragraph (a) to read as follows:
38.101 General.
(a) The Federal Supply Schedule program, pursuant to 41 U.S.C.
259(b)(3)(A), provides Federal agencies with a simplified process of
acquiring commercial supplies and services in varying quantities while
obtaining volume discounts. Indefinite-delivery contracts are awarded
using competitive procedures to firms. The firms provide supplies and
services at stated prices for given periods of time, for delivery
within a stated geographic area such as the 48 contiguous states, the
District of Columbia, Alaska, Hawaii, and overseas. The schedule
contracting office issues Federal Supply Schedule publications that
contain a general overview of the Federal Supply Schedule (FSS) program
and address pertinent topics.
* * * * *
PART 53--FORMS
53.213 [Amended]
0
5. Amend section 53.213 in paragraph (f)(4) by removing ``8.405-2'' and
adding ``8.406-1'' in its place.
[FR Doc. 04-13622 Filed 6-17-04; 8:45 am]