[Federal Register Volume 78, Number 145 (Monday, July 29, 2013)]
[Proposed Rules]
[Pages 45490-45493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18167]
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DEPARTMENT OF STATE
48 CFR Parts 645 and 652
[Public Notice 8395]
RIN 1400-AC33
Department of State Acquisition Regulation
AGENCY: State Department.
ACTION: Proposed rule.
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SUMMARY: This proposed rule will update the Department of State
Acquisition Regulation (DOSAR) to conform to recent Federal Acquisition
Regulation (FAR) changes and adds a new DOSAR clause and provision
regarding reporting certain categories of Government-furnished and
contractor-acquired property.
DATES: The Department will accept comments from the public up to
September 27, 2013.
ADDRESSES: You may submit comments by any of the following methods:
Email: [email protected]. You must include the RIN in
the subject line of your message.
Mail (paper, disk, or CD-ROM submissions): Ella Ramirez,
Senior Procurement Analyst, Policy Division, Department of State,
Office of the Procurement Executive, 2201 C Street NW., Suite 900,
State Annex Number 27, Washington, DC 20522-0602.
Fax: 703-875-6155.
Persons with access to the Internet may also view this
notice and provide comments by going to the regulations.gov Web site at
http://www.regulations.gov/index.cfm and searching on docket DOS-2013-
8395.
FOR FURTHER INFORMATION CONTACT: Ella Ramirez, Senior Procurement
Analyst, Policy Division, Department of State, Office of the
Procurement Executive, 2201 C Street NW., Suite 900, State Annex Number
27, Washington, DC 20522-0602; email address: [email protected].
SUPPLEMENTARY INFORMATION:
Background
This proposed rule provides updates to the DOSAR Government
Property coverage to correspond with current FAR requirements and to
implement Department of State policies regarding Government Property.
The proposed rule would make the following changes:
Update DOSAR Part 645, Government Property to conform to
the current version of FAR Part 45. FAR Part 45 was completely revised
and re-structured in 2007. Part 45 has been updated since, most
recently in April 2012. DOSAR Part 645 was last updated in 1999, and is
therefore out of date.
Add a new DOSAR provision and clause regarding management
and reporting of Government-furnished and contractor-acquired property.
The provision at DOSAR 652.245-70, Status of Property Management
System, was inadvertently left out of the previously approved
information collection and it is now being added to update the DOSAR
rule. The provision requests information from offerors regarding their
property management systems in order to comply with FAR 45.201(c),
which says that the solicitation shall require all offerors to submit a
description of the offeror's property management system, plan, and any
customary commercial practices, voluntary consensus standards, or
industry-leading practices and standards to be used by the offeror in
managing Government property. Additionally, the Department must be able
to determine if there will be a need for a review of the prospective
contractor's property control system. The new clause at DOSAR 652.245-
71, Accounting for Government Property, requests quarterly reporting of
U.S. Department of State capitalized property which consists of the
following:
[cir] Highway motor vehicles and aircraft, regardless of cost, that
are provided by the Government or acquired by a contractor for the
Government;
[cir] Software exceeding $500,000 in value, including labor costs
to develop, that is provided by the Government or acquired by a
contractor for the account of the Government; and
[cir] Personal property greater than $25,000 (and not included in
the above list) that is provided by the Government or acquired by the
contractor for the account of the Government. The personal property
must be complete within itself; must not lose its identity or become a
component part of other property when put into use; and is of a durable
nature with an estimated useful life expectancy to exceed two years.
This clause is being added due to the need to obtain current data
to support the Department of State (DOS) financial statements. From a
financial accounting perspective, DOS must have a way of keeping track
of its capital assets; therefore, this clause requires reporting of all
personal property that meets the criteria for capitalization, as set
forth in the Foreign Affairs Manual (FAM) at 4 FAM 734.2.
Regulatory Findings
Administrative Procedure Act
In accordance with provisions of the Administrative Procedure Act,
the Department is publishing this proposed rule and inviting public
comment.
Regulatory Flexibility Act
The Department of State, in accordance with the Regulatory
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by
approving it, certifies that this rule will not have a significant
economic impact on a substantial number of small entities. This
determination was based on the fact that the reporting requirements are
targeted at a very narrow segment of government property and based on a
determination that there are only 14 contractors who are currently
subject to the reporting requirements of the clause. Only four of these
are small business concerns. Thus, it was concluded that the rule will
not have a significant economic impact on a substantial number of small
entities.
Unfunded Mandates Act of 1995
This rule will not result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any year and it will not significantly or uniquely
affect small governments. Therefore, no actions were deemed necessary
under the provisions of the Unfunded Mandates Act of 1995.
Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule as defined by the Small Business
Regulatory Enforcement Act of 1996 (5 U.S.C. 801 et seq.). This rule
will not result in an annual effect on the economy of $100 million or
more; a major increase in costs or prices; or significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based
[[Page 45491]]
companies to compete with foreign-based companies in domestic and
import markets. This determination was based on the fact that the
reporting requirements are targeted at a very narrow segment of
government property, and on a determination that there are only 14
contractors who are currently subject to the reporting requirements of
the clause. The rule does not place new requirements on contract
performance, but merely addresses reporting of existing information.
Executive Orders 12866 and 13563
Executive Orders (E.O.) 12866 and 13563 direct agencies to assess
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). E.O. 13563
emphasized the importance of quantifying both costs and benefits, of
reducing costs, of harmonizing rules, and of promoting flexibility. The
Department of State does not consider this rule to be a ``significant
regulatory action'' under Executive Order 12866, section 3(f),
Regulatory Planning and Review.
In addition, the Department is exempt from Executive Order 12866
except to the extent that it is promulgating regulations in conjunction
with a domestic agency that are significant regulatory actions. The
Department has nevertheless reviewed the regulation to ensure its
consistency with the regulatory philosophy and principles set forth in
the Executive Orders and finds that the benefits of the proposed rule
outweigh any costs.
Executive Order 13132
This rule will not have substantial direct effects on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government. Therefore, in accordance with section 6 of
Executive Order 13132, it is determined that this rule does not have
sufficient federalism implications to require consultations or warrant
the preparation of a federalism summary impact statement.
Executive Order 13175
The Department has determined that this rulemaking will not have
tribal implications, will not impose substantial direct compliance
costs on Indian tribal governments, and will not pre-empt tribal law.
Accordingly, the requirements of Executive Order 13175 do not apply to
this rulemaking.
Paperwork Reduction Act
The Paperwork Reduction Act of 1980 (44 U.S.C. Chapter 35) applies,
because the proposed rule imposes information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501 et seq.
The Department of State is seeking OMB approval for the information
collection described below.
Title of Information Collection: Department of State
Acquisition Regulation (DOSAR) 652.245-70, Status of Property
Management System
OMB Control Number: 1405-0050
Type of Request: Revision of Currently Approved Collection
Originating Office: Bureau of Administration, Office of
Procurement Executive, Policy Division (A/OPE/PD)
Form Number: None
Respondents: Business and other for-profit and not-for-
profit organizations wishing to receive Department of State contracts.
Estimated Total Number of Respondents: 3,466
Estimated Total Number of Responses: 9,330
Average Time Per Response: 30 hours
Total Estimated Burden Time: 275,984
Frequency: On Occasion
Obligation to Respond: Required to Obtain or Retain a
Benefit
The total number of responses was increased by fourteen from 9,316
to 9,330. As a result of this change, the total estimated burden was
increased from 275,970 hours to 275,984 hours. The increase in the
responses and the burden is due to the impact of this DOSAR provision.
The Department will accept comments from the public up to September
27, 2013.
ADDRESSES: You may submit comments by any of the following methods:
Web: www.Regulations.gov, search for this notice by using
this rule's docket number--DOS-2013-8395.
E-Mail: [email protected] with the subject line,
``DOSAR Rule Comments.''
Fax: 703-875-6155
Direct requests for additional information regarding the collection
listed in this notice, including requests for copies of the proposed
collection instrument and supporting documents, to Ella Ramirez, Senior
Procurement Analyst, who may be reached at (703) 516-1693, or at
[email protected].
Abstract of proposed collection:
The proposed rule will update the Department of State Acquisition
Regulation (DOSAR) to conform to recent Federal Acquisition Regulation
(FAR) changes, and adds a new DOSAR provision, 652.245-70, regarding
reporting on the status of offeror's property management systems.
Respondents are offerors on solicitations for contracts under which
specified government property will be provided. This is an existing IC,
1405-0050, Department of State Acquisition Regulation (DOSAR) 652.245-
70, Status of Property Management System. This provision was
inadvertently left out of the previously approved Information
Collection package. The new provision is being inserted into the DOSAR
and concurrently added into the current IC. The new DOSAR provision
(and IC requirement) asks for procedures for government property
management (transportation, software, personal property). Over the
course of the last two fiscal years (FY 11 and FY 12), only four
solicitations were issued under which this new reporting was required,
and on those solicitations, an average of 2.3 submissions was received.
Based on conversations with a sample of submitters, we estimate that
approximately 1.0 hour is required to research, document and
incorporate the information into the proposal.
We are soliciting public comments to permit the Department to:
Evaluate whether the proposed information collection is
necessary for the proper functions of the Department.
Evaluate the accuracy of our estimate of the time and cost
burden for this proposed collection, including the validity of the
methodology and assumptions used.
Enhance the quality, utility, and clarity of the
information to be collected.
Minimize the reporting burden on those who are to respond,
including the use of automated collection techniques or other forms of
information technology.
Please note that comments submitted in response to this Notice are
public record. Before including any detailed personal information, you
should be aware that your comments as submitted, including your
personal information, will be available for public review.
Legal Authorities are as follows:
(1) Code of Federal Regulations, title 48, chapter 6, Department of
State Acquisition Regulation
(2) Code of Federal Regulations, title 48, chapter 1, Federal
Acquisition Regulation
(3) Public Law 103-236, Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995
[[Page 45492]]
(4) Foreign Service Buildings Act of 1926, as amended (22 U.S.C. 302)
(5) Omnibus Diplomatic Security and Antiterrorism Act of 1986 (22
U.S.C. 4852)
(6) Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (22
U.S.C. 4864)
Methodology:
The information collections may be sent to the Office of Finance
via email at [email protected].
List of Subjects in 48 CFR Parts 645 and 652
Government procurement, Electronic commerce, Contracts.
Accordingly, for reasons set forth in the preamble, title 48,
chapter 6 of the Code of Federal Regulations is proposed to be amended
as follows:
0
1. Revise part 645 to read as follows:
PART 645--GOVERNMENT PROPERTY
Subpart 645.1--General
Sec.
645.107 Contract clauses.
645.107-70 DOSAR contract clause and solicitation provision.
Authority: 40 U.S.C. 121; 22 U.S.C. 2651a; 48 CFR Subpart 1.3.
645.107 Contract clauses.
645.107-70 DOSAR contract clause and solicitation provision.
(a) The contracting officer shall insert the provision at 652.245-
70, Status of Property Management System, in solicitations when any of
the following conditions apply:
(1) Highway motor vehicles and aircraft, regardless of cost, are
provided by the Government or acquired by the contractor for the
account of the Government;
(2) Software exceeding $500,000 in value, including labor costs to
develop, is provided by the Government or acquired by the contractor
for the account of the Government; or
(3) Personal property greater than $25,000 (and not in paragraphs
(a)(1) or (2) of this section) is provided by the Government or
acquired by the contractor for the account of the Government. The
personal property must be complete within itself; does not lose its
identity or become a component part of other property when put into
use; and is of a durable nature with an estimated useful life
expectancy to exceed two years.
(b) The contracting officer shall insert the clause at 652.245-71,
Accounting for Government Property, in all solicitations and contracts
than contain the provision at 652.245-70.
PART 652--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
2. The authority citation for part 652 continues to read as follows:
Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.
0
3. Add section 652.245-70 to read as follows:
652.245-70 Status of Property Management System.
As prescribed in 645.107-70(a), insert the following provision:
Status of Property Management System (DATE)
(a) When used in this provision, government-furnished property,
government property, and contractor-acquired property are as defined
in FAR 45.101.
(b) Offerors shall include in their quote or offer:
(1) Whether the offeror's property management system that will
be used on this contract to track government-furnished property and/
or contractor-acquired property has been determined to be adequate
by a Federal property manager;
(2) The name, address, telephone number and email address of
both the--
(i) Cognizant Administrative Contracting Officer (ACO)
responsible for review and determination of adequacy of the
contractor's property system; and
(ii) The cognizant contractor government property manager;
(3) The voluntary consensus standard or industry leading
practices and standards to be used in the management of government
property, or existing property management plans, methods, practices
or procedures for accounting of property.
(End of provision)
0
4. Add section 652.245-71 to read as follows:
652.245-71 Accounting for Government Property.
As prescribed in 645.107-70(b), insert the following clause:
Accounting for Government Property (DATE)
(a) Definitions. As used in this clause:
Disposition means government property that has been removed from
use on the contract.
Highway motor vehicle means any vehicle, self propelled or drawn
by mechanical power, designed and operated principally for highway
transportation of property or passengers. (41 CFR 102-34.35)
(b) The Contractor shall establish and maintain a property
management system that is in accordance with the clause at FAR
52.245-1, Government Property. This clause supplements these
requirements by specifying the U.S. Department of State capitalized
property reporting requirements.
(c) The Contractor shall submit electronically one report on an
annual basis and three other reports on a quarterly basis for the
following:
(1) Where highway motor vehicles and aircraft, regardless of
cost, are provided by the Government or acquired by the Contractor
for the account of the Government;
(2) Where software exceeding $500,000 in value, including labor
cost to develop, is provided by the Government or acquired by the
Contractor for the account of the Government; or
(3) Where personal property greater than $25,000 (not in
paragraph (c)(1) or (c)(2) of this clause) is provided by the
Government or acquired by the Contractor for the account of the
Government. The personal property must be complete within itself;
does not lose its identity or become a component part of other
property when put into use; and is of a durable nature with an
estimated useful life expectancy to exceed two years.
(d) The Contractor shall submit all annual and quarterly reports
in the following format, except as stated in paragraph (e) of this
clause:
(1) Property shall be grouped by the following property
classifications:
(i) Highway motor vehicles;
(ii) Communications equipment;
(iii) Information technology (formerly called automated data
processing) equipment;
(iv) Reproduction equipment;
(v) Security equipment;
(vi) Software;
(vii) Software-in-development;
(viii) Medical equipment;
(ix) Aircraft property; and
(x) Other depreciable personal property.
(2) Data elements for each unit of property shall include:
(i) Contract number: Federal Government contract or purchase
order number;
(ii) Task Order number;
(iii) Property classification: From classification listed in
paragraph (d)(1) of this clause;
(iv) Denotation as either government-furnished property (GFP) or
contractor-acquired property (CAP);
(v) Noun name of property (i.e. generator);
(vi) Description of property;
(vii) Manufacturer;
(viii) Model;
(ix) Serial number;
(x) National Stock Number if applicable
(xi) Unique-item identifier or equivalent: such as barcode label
(tag number) or system-assigned number. For highway motor vehicles,
this must be the vehicle identification number (VIN);
(xii) Date received: Date contractor took possession;
(xiii) Date placed in service;
(xiv) Acquisition method:
(A) Contractor Acquired Property (CAP); or
(B) Government-furnished property (GFP); (If from another DOS
contract, or government agency, please specify).
(xv) Acquisition cost (As defined in FAR clause 52.245-1(a)):
Use estimated fair-market value for property transferred or donated,
at the time acquired, if actual cost is unknown;
(xvi) Estimated useful life in years: The period during which
the property is expected
[[Page 45493]]
to provide the service for which it was intended. This should
normally be equivalent to the depreciation schedule;
(xvii) Current location of the property: Country and city
(xviii) Disposal Date
(xix) Disposal Method
(e) The Contractor shall submit a full property report, as
described in this clause, including affirmation, for the report
covering the first quarter of the base contract. Thereafter,
submission of reports shall follow the time frames outlined in
paragraph (h) of this clause. Quarterly property reports, other than
the annual report, may be either full property reports or only
updates to the full property report. Quarterly reports do not
require affirmations even when the Contractor chooses to submit a
full property report. Affirmations are only required for the report
covering the first quarter of the contract and the annual report for
each subsequent option year of the contract. If the Contractor
submits a full property report, dispositions subsequent to any
previous report must also be identified in the report. If a
Contractor submits a quarterly report in the form of an update, the
update shall include acquisitions and dispositions.
(f) The Contractor shall provide any required affirmation in the
following format. The affirmation shall be signed by the
Contractor's managerial personnel (as defined in FAR clause 52.245-
1):
``I hereby affirm that a physical inventory of the government
property (as defined in Federal Acquisition Regulation (FAR) 45.101)
of Department of State contract number (insert contract number) has
been completed as of (insert date), the inventory has been
reconciled to our records and the property information in our
report, and that to the best of my knowledge and belief, this
inventory is accurate, current, and complete.
Signed:
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(g) In addition to the information required above, the
Contractor shall include in all property reports:
(1) The current degree to which properly qualified Government
personnel have evaluated the Contractor's property management system
as being an adequate property management system;
(2) The name, mailing address, telephone number, and email
address of the qualified Government person(s) who performed the
evaluation of the Contractor's property management system; and
(3) The cognizant contractor government property manager.
(h) Reports shall cover the following time periods and are due
on the following dates:
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Report Period covered Due date
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1st Quarter Report............ For 1st quarter ending January 15.
December 31.
2nd Quarter Report............ For 2nd quarter ending April 30.
(Annual Property Report)...... March 31.
3rd Quarter Report............ For 3rd quarter ending July 15.
June 30.
4th Quarter Report............ For 4th quarter ending October 8.
September 30.
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(i) The Contractor shall send a copy of all reports to the
individuals listed below. The Contractor shall submit reports in
electronic format as an attachment to an email. The affirmation
described in paragraph (f) of this clause shall be in Adobe Acrobat
(.pdf) format (including the signature), while the inventories, both
quarterly and annual, shall be in Microsoft Excel format (Adobe
Acrobat and Microsoft Excel versions shall be compatible with
versions used by DOS). Send all reports to:
(1) The contracting officer;
(2) The Property Administrator;
(3) The contracting officer's representative (COR);
(4) [email protected];
(5) [email protected]; and
(6) All individuals listed below (if any):
(i) Contracting officer shall list individuals, if any.
(ii) [Reserved]
(j) The Contractor shall cooperate by responding timely to all
follow up questions and requests for supporting documentation
whether requested by the Department or external auditors.
(End of clause)
Dated: June 12, 2013.
Corey M. Rindner,
Procurement Executive, Department of State.
[FR Doc. 2013-18167 Filed 7-26-13; 8:45 am]
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