[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)] [Rules and Regulations] [Pages 2630-2631] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-1016] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 8, 51, and 52 [FAC 90-37; FAR Case 91-108; Item II] RIN 9000-AF71 Federal Acquisition Regulation; Javits-Wagner-O'Day Program (JWOD) AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to clarify that the Government's obligation to purchase items from statutorily mandated sources of supply also applies when contractors purchase items for Government use. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. EFFECTIVE DATE: March 26, 1996. FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-37, FAR case 91-108.Q02 SUPPLEMENTARY INFORMATION: A. Background A proposed rule was published in the Federal Register at 59 FR 14454, March 28, 1994. The rule amended FAR Parts 8, 51, and 52 to clarify that the statutory obligation for Government agencies to purchase certain items from the Committee for Purchase from People Who are Blind or Severely Disabled also applies when contractors purchase items for Government use. Five substantive comments from three sources were received during the public comment period. Clarifying revisions have been made to Secs. 51.101(c) and 52.208-9 of the rule as a result of the public comments. B. Regulatory Flexibility Act The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this final rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it merely clarifies that contractors must purchase certain items from the same statutorily mandated sources that Government agencies are required to use, when a contractor is performing an agency's supply function. 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 OMB under 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Parts 8, 51, and 52 Government procurement. Dated: January 11, 1996. Edward C. Loeb, Acting Director, Office of Federal Acquisition Policy. Therefore, 48 CFR parts 8, 51, and 52 are amended as set forth below: 1. The authority citation for 48 CFR parts 8, 51, and 52 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES 2. Section 8.001 is amended by revising paragraphs (a)(2) (ii) and (iii) and adding paragraph (c) to read as follows: 8.001 Priorities for use of Government supply sources. (a) * * * (2) * * * (ii) Mandatory Federal Supply Schedules (see subpart 8.4); (iii) Optional use Federal Supply Schedules (see subpart 8.4); and * * * * * (c) The statutory obligation for Government agencies to satisfy their [[Page 2631]] requirements for supplies available from the Committee for Purchase From People Who Are Blind or Severely Disabled also applies when contractors purchase the supply items for Government use. 3. Section 8.003 is added to read as follows: 8.003 Contract clause. The contracting officer shall insert the clause at 52.208-9, Contractor Use of Mandatory Sources of Supply, in solicitations and contracts which require a contractor to purchase supply items for Government use that are available from the Committee for Purchase from People Who Are Blind or Severely Disabled. The contracting officer shall identify in the contract schedule the items which must be purchased from a mandatory source and the specific source. PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS 4. Section 51.101 is amended by adding paragraph (c) to read as follows: 51.101 Policy. * * * * * (c) Contracting officers shall authorize contractors purchasing supply items for Government use that are available from the Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7) to purchase such items from the Defense Logistics Agency (DLA), the General Services Administration (GSA), and the Department of Veterans Affairs (VA) if they are available from these agencies through their distribution facilities. Mandatory supplies that are not available from DLA/GSA/VA shall be ordered through the appropriate central nonprofit agency (see 52.208-9(c)). 5. Section 51.102 is amended in the first sentence of the introductory text of paragraph (a) by inserting after the word ``sources'' the phrase ``in accordance with 51.101 (a) or (b),''; adding a new second sentence; and revising paragraph (c)(3) to read as follows: 51.102 Authorization to use Government supply sources. (a) * * * A written finding is not required when authorizing use of the Government supply sources in accordance with 51.101(c). * * * * * * * * (c) * * * (3) Approval for the contractor to use Department of Veterans Affairs (VA) supply sources from the Deputy Assistant Secretary for Acquisition and Materiel Management (Code 90), Office of Acquisition and Materiel Management, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420; * * * * * PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 6. Section 52.208-9 is added to read as follows: 52.208-9 Contractor Use of Mandatory Sources of Supply. As prescribed in 8.003, insert the following clause: Contractor Use Of Mandatory Sources Of Supply (Mar 1996) (a) Certain supplies to be provided under this contract for use by the Government are required by law to be obtained from the Committee for Purchase from People Who Are Blind or Severely Disabled (Javits-Wagner-O' Day Act (JWOD) (41 U.S.C. 48)). Additionally, certain of these supplies are available from the Defense Logistics Agency (DLA), the General Services Administration (GSA), or the Department of Veterans Affairs (VA). The Contractor shall obtain mandatory supplies to be provided for Government use under this contract from the specific sources indicated in the contract schedule. (b) The Contractor shall immediately notify the Contracting Officer if a mandatory source is unable to provide the supplies by the time required, or if the quality of supplies provided by the mandatory source is unsatisfactory. The Contractor shall not purchase the supplies from other sources until the Contracting Officer has notified the Contractor that the mandatory source has authorized purchase from other sources. (c) Price and delivery information for the mandatory supplies is available from the Contracting Officer for the supplies obtained through the DLA/GSA/VA distribution facilities. For mandatory supplies that are not available from DLA/GSA/VA, price and delivery information is available from the appropriate central nonprofit agency. Payments shall be made directly to the source making delivery. Points of contract for JWOD central nonprofit agencies are: (1) National Industries for the Blind (NIB) 1901 North Beauregard Street, Suite 200 Alexandria, VA 22311-1705 (703) 998-0770 (2) NISH, 2235 Cedar Lane, Vienna, VA 22182-5200 (703) 560-6800 (End of clause) [FR Doc. 96-1016 Filed 1-25-96; 8:45 am] BILLING CODE 6820-EP-M