[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Rules and Regulations]
[Pages 42801-42804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20215]



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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 503, 504, 505, 507, 510, 512, 513, 514, 515, 523, 528, 
529, 532, 536, 543, and 546

[APD 2800.12A, CHGE 66]

RIN 3090-AF76


General Services Administration Acquisition Regulation; 
Implementing Federal Acquisition Circular (FAC 90-29)

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to conform to the Federal Acquisition Regulation 
(FAR) as amended by Federal Acquisition Circular (FAC) 90-29 which 
amended the FAR to address the use of electronic commerce/electronic 
data interchange in Government contracting and to implement the new 
simplified acquisition procedures and Federal Acquisition Computer 
Network (FACNET) requirements of the Federal Acquisition Streamlining 
Act (FASA) of 1994. In addition, GSA Form 3519 is deleted and the 3186A 
has been revised to read ``Order for Supplies or Services (Simplified 
Acquisition).'' The intended effect is to provide guidance to 
contracting personnel that is consistent with the FAR as amended by FAC 
90-29, which was issued as an interim rule effective July 3, 1995.


[[Page 42802]]

EFFECTIVE DATE: August 17, 1995.

FOR FURTHER INFORMATION CONTACT:
Teresa Elbin, Office of GSA Acquisition Policy (202) 501-1224.

SUPPLEMENTARY INFORMATION:

A. Public Comments

    This rule was not published in the Federal Register for the public 
comment because it merely revises the GSAR to conform to the FAR as 
amended by FAC 90-29.

B. Executive Order 12866

    This rule was not submitted to the Office of Management and Budget 
because it is not a significant rule as defined in Executive Order 
12866, Regulatory Planning and Review.

C. Regulatory Flexibility Act

    This rule is not expected to have a significant economic impact on 
a substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 60 et seq.). The rule will have a beneficial impact on 
all offerors, including small business concerns. This rule reduces the 
burden on entities desiring to do business with the General Services 
Administration and enhances the efficiency of the contracting process 
by placing increased emphasis on the use of electronic contracting 
methods for simplified acquisitions and by promoting greater use of the 
Governmentwide purchase card for micro-purchases. The increased 
efficiencies associated with such changes will have the most 
significant impact on GSA's small business contractors who, during 
fiscal year 1994, received 88% of GSA's small purchase awards 
(contracts under $25,000). It also eliminates any confusion and 
inconsistencies with the FAR as amended by FAC 90-29.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements which require the 
approval of the Office of Management and Budget under 44 U.S.C. 3051, 
et seq.

List of Subjects in 48 CFR Parts 503, 504, 505, 507, 510, 512, 513, 
514, 515, 523, 528, 529, 536, and 546

    Government procurement.

    Accordingly, 48 CFR Chapter 5 is amended as follows:
    1. The authority citation for 48 CFR Parts 503, 504, 505, 507, 510, 
512, 513, 514, 515, 523, 528, 529, 532, 536, 543, and 546 continues to 
read as follows:

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

PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST


Sec. 503.570-2  [Amended]

    2. Section 503.570-2 is amended by removing the words ``small 
purchase limitation'' and inserting ``the simplified acquisition 
threshold.''


Sec. 504.800  [Amended]

    3. Section 504.800 is amended by removing ``small purchase 
limitation'' and inserting ``simplified acquisition threshold;'' and 
removing ``small purchases'' in the last sentence and inserting 
``purchases made using simplified acquisition procedures.''

PART 505--PUBLICIZING CONTRACT ACTIONS


Sec. 505.101  [Amended]

    4. Section 505.101 is amended in paragraph (b) by removing the 
words ``small purchase limitation'' and inserting ``simplified 
acquisition threshold.''
    5. Section 505.240-70 is amended by revising the last sentence in 
paragraph (b) to read as follows:


Sec. 505.204-70  Presolicitation notices used in connection with market 
searches for competitive sources.

* * * * *
    (b) * * * In conjunction with that solicitation, the specific 
procurement of the supply or service must be publicized in the CBD as 
required by FAR 5.201, unless the contract action will be made through 
interim or full FACNET.


Sec. 505.303-70  [Amended]

    6. Section 505.303-70 is amended in paragraphs (a)(4) and (b)(1) by 
removing the figure ``$25,000'' and inserting ``$100,000'' and by 
inserting ``and Intergovernmental'' after ``Congressional'' in the 
first sentence of paragraph (b)(1).


Sec. 505.503  [Amended]

    7. In section 505.503 remove the words ``small purchase 
limitation'' and insert ``simplified acquisition threshold.''

PART 507--ACQUISITION PLANNING


Sec. 507.102  [Amended]

    8. In section 507.102 remove the words ``small purchase 
limitation'' and insert ``simplified acquisition threshold.''


Sec. 507.104  General procedures.

    9. Section 507.104 is amended by revising paragraphs (c), (e) 
introductory text and (e)(2) to read as follows:
* * * * *
    (c) Limited plans must be in writing, unless waived under paragraph 
(d) of this section.
* * * * *
    (e) Acquisition plans for contracts which propose using other than 
full and open competition must be coordinated with and concurred in by 
the cognizant competition advocate unless the proposed contract will be 
awarded under the authority at FAR 6.302-5 or will be awarded under a 
class justification approved by the Associated Administrator for 
Acquisition Policy. The cognizant competition advocate is--
    (1) * * *
    (2) The agency competition advocate, as defined in Subpart 502.1, 
for contracts exceeding $10,000,000.

PART 510--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE 
DESCRIPTIONS


Sec. 510.004  [Amended]

    10. In section 510.004 paragraph (b)(2) remove the word ``small'' 
and add the words ``at or below the simplified acquisition threshold'' 
after the word ``purchases.''
    11. Section 510.011 is amended by revising paragraphs (a), (e), (g) 
and (i) and removing paragraph (j) to read as follows:


Sec. 510.011  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the clause at 552.210-70, 
Standard References, in solicitations and contracts for construction 
services when the contract amount is expected to exceed the simplified 
acquisition threshold and when:
* * * * *
    (e) The contracting officer shall include the clause at 552.210-75, 
Marking, in requirements solicitations and contracts for supplies when 
deliveries may be made to civilian and military activities and the 
contract amount is expected to exceed the simplified acquisition 
threshold. The clause may be used in definite quantity contracts when 
it is appropriate.
* * * * *
    (g) The contracting officer shall include the clause at 552.210-77, 
Preservation, Packaging and Packing, in solicitations and contracts for 
supplies when the contract amount is expected to exceed the simplified 
acquisition limitation. The contracting officer may include the clause 
in contracts awarded through simplified acquisition procedures when 
appropriate.
* * * * *

[[Page 42803]]

    (i) The contracting officer shall include the clause at 552.210-79, 
Packing List, in solicitations and contracts for supplies, including 
purchases made using simplified acquisition procedures.

PART 512--CONTRACT DELIVERY OR PERFORMANCE


512.104  [Amended]

    12. Section 512.104 is amended in paragraph (b) by removing the 
words ``small purchase limitation'' and inserting ``simplified 
acquisition threshold.''
    13. Part 513 is amended by revising the heading to read as follows:

PART 513--SIMPLIFIED ACQUISITION PROCEDURES

    14. Section 513.106 is revised to read as follows:


513.106  Solicitation competition, evaluation of quotes, and award.

    (a) Oral solicitation. When quotations are being solicited orally 
and the Service Contract Act applies information on the Act and the 
applicable wage determination must be communicated to potential 
contractors.
    (b) Data to support simplified acquisitions.
    (1) The GSA Form 2010, Small Purchase Tabulation Source List/
Abstract, is available for use to document written and oral quotations 
for purchases in excess of $2,500.
    (2) When quotes or offers are being evaluated based on price alone 
and other than the lowest quotation is selected for award, the basis 
for rejecting any lower quotation should be documented.


513.204  [Removed]


513.501  [Removed]

    15. Sections 513.204 and 513.501 are removed.


513.505-2  [Amended]

    16. In section 513.505-2 at paragraph (c) remove the words ``(Small 
Purchase)'' after the word ``Services'' and remove the words, ``small 
purchases'' after the word ``making'' and substitute ``simplified 
acquisitions,'' remove the words ``small purchase'' after the word 
``utilizing'' and substitute the words ``simplified acquisition;'' and 
at paragraph (d) remove the words ``small purchases'' and substitute 
``simplified acquisitions.''
    17. Section 513.505-3 is amended by revising paragraph (a) to read 
as follows:


513.505-3  Standard Form 44, Purchase Order-Invoice-Voucher.

    (a) General. Use of the Standard Form 44 will not serve the best 
interest of either the Government or business when the accounting 
system of the seller requires production of an invoice as a matter of 
routine. In these cases, other authorized methods of making simplified 
acquisitions should be used. Whenever possible, preference should be 
given to the use of Governmentwide commercial purchase card.
* * * * *
    18. Section 513.l505-70 is revised to as follows:


513.505-70  Two-party contract forms.

    When a determination is made that it is in the Government's 
interest to negotiate a two-party contract (see FAR 13.104(f)) for 
services, Standard Form 1447, Solicitation Contract, may be used.
    19. Section 513.7001 is amended by redesignating paragraph (b)(3) 
as (b)(4), adding a new paragraph (b)(3), by revising newly 
redesignated paragraph (b)(4) and (c), and by removing paragraphs 
(d)(1), (d)(2) and (d)(4) and redesignating paragraph (d)(3) as (d)(2) 
and adding a new paragraph (d)(1) to read as follows:


513.7001  Certified invoice procedure for procurements not requiring a 
written purchase order.

* * * * *
    (b) * * *
    (3) The supplier does not accept the Government commercial purchase 
card or the individual making the purchase does not have a purchase 
card.
    (4) Appropriate invoices can be obtained from the supplier.
    (c) For special rules governing purchases of hand and measuring 
tools and stainless steel flatware see 525.105-70 and 525.105-71.
    (d) Use of the certified invoice procedure does not eliminate the 
requirements to--
    (1) Verifying price reasonableness in accordance with the 
conditions contained in FAR 13.603.
    (2) Certify that the quality and quantity of items/services 
furnished are in accordance with the verbal agreement made with the 
vendor;
* * * * *

PART 514--SEALED BIDDING


514.203-1  [Amended]

    20. Section 514.203-1 is amended by revising the heading to read as 
follows:


514.203-1  Transmittal to prospective bidders.

* * * * *


514.205-1  [Amended]

    21. Section 514.205-1 is amended in the first sentence of paragraph 
(a) by removing the words ``small purchase limitations'' and inserting 
``simplified acquisition threshold''.
    22. Section 514.370 is amended by adding a sentence at the end of 
the paragraph to read as follows:


514.370  Copies of bids required in submission.

    * * * These requirements do not apply to bids transmitted and 
received through an electronic commerce method authorized by the 
solicitation.


Sec. 514.402-1  [Amended]

    23. Section 514.402-1 is amended in the second sentence of 
paragraph (b) by removing the words ``Director of Small and 
Disadvantaged Business Utilization'' and inserting ``Associate 
Administrator for Enterprise Development.''


514.408  [Redesignated as 514.409]


514.408-1  [Redesignated as 514.409-1]


514.408-70  [Redesignated as 514.409-70]

    24. Sections 514.408, 514.408-1, and 514.408-70 are redesignated as 
514.409, 514.409-1, and 514.409-70 respectively.
    25. Section 514.408-72 is revised to read as follows:


514.408-72  Forms for recommending award(s) (Supplies and services).

    GSA Form 1535, Recommendation for Award(s), and GSA Form 1535-A, 
Recommendation for Award(s), Continuation Sheet, must be used to 
document all proposed awards (except construction contracts) exceeding 
the simplified acquisition threshold. The use of the form for awards at 
or below the simplified acquisition threshold is at the discretion of 
the contracting activity. One or more awards may be set forth on each 
form. All information pertinent to the recommendation must be furnished 
on the form. The checklist on the back of the form must be completed.


514.407  [Redesignated as 514.408]


514.407-1  [Redesignated as 514.408-1 and amended]


514.407-6  [Redesignated as 514.408-6]


514.407-70  [Redesignated as 514.408-70]


514.407-71  [Redesignated as 514.408-71]


514.407-72  [Redesignated as 514.408-72]

    26. Sections 514.407, 514.407-1, 514.407-6, 514.407-70, 514.407-71 
and 514.407-72 are redesignated as 514.408, 514.408-01, 514.408-6, 
514.408-70, 514.408-71 and 514.408-72 respectively; in newly designated 


[[Page 42804]]
section 514.408-1 paragraph (a) remove the phrase ``when approved by 
the HCA;'' in paragraph (b) remove ``FAR 14.407-1(c)(5)'' and insert 
``FAR 14.408-1(c)(5)''; and in paragraph (c) remove ``FAR 14.407-
1(c)(4)'' and insert ``FAR 14.408-1(c)(4)'' and remove ``FAR 519.502-
2(b)'' and insert ``519.503-4(b)''.


514.406  [Redesignated as 514.407]


514.406-3  [Redesignated as 514.407-3 and revised]


514.406-4  [Redesignated as 514.407-4]

    27. Sections 514.406, 514.406-3 and 514.406-4 are redesignated as 
514.407, 514.407-3 and 514.407-4 respectively, and newly designated 
section 514.407-3 is revised to read as follows:


514.407-3  Other mistakes disclosed before award.

    (a) Delegations of authority by head of the agency. In accordance 
with FAR 14.407-3(e), the contracting directors (see 502.101) are 
authorized, without power of redelegation, to make the determinations 
regarding corrections and/or withdrawals treated in FAR 14.407-3(a), 
(b), and (c), and to make the corollary determinations not to permit 
withdrawal or correction for reasons indicated in FAR 14.407-3(d).
    (b) Legal review and approval. Assigned counsel must approve 
determinations by the contracting director and contracting officer 
regarding mistakes in bid.

PART 515--CONTRACTING BY NEGOTIATION


515.1001  [Removed]

    28. Section 515.1001 is removed.
515.1070  [Amended]

    29. In section 515.1070 at paragraph (b) remove the words ``small 
purchase'' and insert ``simplified acquisition;'' at paragraph (c) 
introductory text remove the word ``small'' in the phrase ``(other than 
small purchases)'' and in the same phrase after the word ``purchases,'' 
add the words ``made using simplified acquisition procedures;'' at 
paragraph (c)(1) remove the words ``FAR 15.1001(c)'' and insert ``FAR 
Subpart 15.10.''

PART 523--ENVIRONMENT, CONSERVATION, AND OCCUPATIONAL SAFETY

    30. Section 523.370 is revised to read as follows:


523.370  Solicitation provision.

    The contracting officer shall insert the provision at 552.223-71, 
Hazardous Material Information, in solicitations including purchases 
made using simplified acquisition procedures, which involve the 
shipment of hazardous materials on an f.o.b. origin basis.

PART 528--BONDS AND INSURANCE

    31. Section 528.310 is amended by removing the words ``small 
purchase limitation'' and inserting ``simplified acquisition 
threshold.''

PART 529--TAXES

    32. Section 529.401-70 revised to read as follows:


529.401-70  Purchases made using simplified acquisition procedures.

    The contracting officer shall insert the clause at 552.229-70, 
Federal, State, and Local Taxes, in purchases made using simplified 
acquisition procedures, except acquisitions of utility services and 
micro purchases.

PART 532--CONTRACT FINANCING

    33. Section 532.111 is amended by revising paragraph (c) and (d) to 
read as follows:


532.111  Contract clauses.

* * * * *
    (c) Adjusting payments. The contracting officer shall insert the 
clause at 552.232-78, Adjusting Payments, in all solicitations and 
contracts for recurring building services expected to exceed the 
simplified acquisition threshold.
    (d) Final payment. The contracting officer shall insert the clause 
at 552.232-79, Final Payment, in all solicitations and contracts for 
recurring building services expected to exceed the simplified 
acquisition threshold.

PART 536--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

* * * * *


536.570-2  [Amended]


536.570-5  [Amended]


536.570-13  [Amended]


536.570-14  [Amended]

    34. Sections 536.570-2, 536.570-5, 536.570-13, and 536.570-14 are 
amended by removing the words ``small purchase limit'' and inserting 
``simplified acquisition threshold.''


536.570-4  [Amended]

    35. Section 536.570-4 is amended by removing the words ``small 
purchase'' in paragraph (c) and inserting ``simplified acquisition 
threshold.''


536.570-8  [Amended]


536.570-9  [Amended]

    36. Sections 536.570-8 and 536.570-9 are amended by removing the 
words ``small purchase limit'' and inserting ``simplified acquisition 
threshold''.

PART 543--CONTRACT MODIFICATION


543.205  [Amended]

    37. Section 543.205 is amended by removing the words ``small 
purchase limitation'' in paragraphs (a) and (b)(2) and inserting 
``simplified acquisition threshold.''

PART 546--QUALITY ASSURANCE


546.403  [Amended]

    38. Section 546.403 is amended in the introductory text by removing 
the words `'small purchase'' and inserting ``simplified acquisition''.


546.710  [Amended]

    39. Section 546.710 is amended in paragraph (e) by removing the 
words ``small purchase limitation'' and inserting ``simplified 
acquisition threshold.''

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.300  [Amended]

    40. Section 552.300 is amended by removing the words ``small 
purchase'' and inserting ``simplified acquisition.''

    Dated: August 8, 1995.
Ida M. Ustad,
Associate Administrator, Office of Acquisition Policy.
[FR Doc. 95-20215 Filed 8-16-95; 8:45 am]
BILLING CODE 6820-61-M