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.