Federal Acquisition Regulation: Strategic Sourcing Documentation, 39883-39886 [2016-14412]

Download as PDF Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Proposed Rules effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This proposed rule is not a major rule under 5 U.S.C. 804. asabaliauskas on DSK3SPTVN1PROD with PROPOSALS III. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this proposed rule 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 the rule raises the simplified acquisition threshold for special emergency procurement authority, an arena in which a smaller percentage of small businesses participate, as compared to larger businesses. However, an initial regulatory flexibility analysis (IRFA) has been prepared consistent with 5 U.S.C. 603. The analysis is summarized as follows: This proposed rule implements section 816 of the National Authorization Act for Fiscal Year (FY) 2016 Public Law 114–92. Therefore, the FAR is revised to raise the simplified acquisition thresholds for special emergency procurement authority. The objective of this proposed rule is to increase the simplified acquisition thresholds for special emergency procurement authority from $300,000 to $750,000 (within the United States) and $1 million to $1.5 million (outside the United States) for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. DoD, GSA, and NASA do not expect this proposed rule 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 the rule raises the simplified acquisition threshold for special emergency procurements, an arena in which a smaller percentage of small businesses participate, as compared to larger businesses. Between $300,000 and the increase to $750,000, 188 total awards were made of which 45 or 24 percent were to small businesses in FY 2014, and 219 total awards were made of which 66 or 30 percent were to small businesses in FY 2015. Between $1 million and the increase to $1.5 million, 56 total awards were made of which 10 or 17 percent were small businesses in FY 2014, and 29 total awards were made of which 9 or 31 percent were to small businesses in FY 2015. The proposed rule imposes no reporting, recordkeeping, or other information collection requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. VerDate Sep<11>2014 19:01 Jun 17, 2016 Jkt 238001 There are no known significant alternatives to the rule. The impact of this proposed rule on small business is not expected to be significant. The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities. DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the proposed rule consistent with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2016–004), in correspondence. IV. Paperwork Reduction Act 39883 PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.003 [Amended] 3. Amend section 13.003 by removing from paragraph (b)(1) ‘‘$300,000’’ and adding ‘‘$750,00’’ in its place. ■ PART 19—SMALL BUSINESS PROGRAMS 19.203 [Amended] 4. Amend section 19.203 by removing from paragraph (b) ‘‘$300,000’’ and adding ‘‘$750,000’’ in its place. ■ 19.502–2 [Amended] 5. Amend section 19.502–2 by removing from paragraph (a) ‘‘$300,000’’ and adding ‘‘$750,000’’ in its place. ■ [FR Doc. 2016–14413 Filed 6–17–16; 8:45 am] BILLING CODE 6820–EP–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION The proposed rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). NATIONAL AERONAUTICS AND SPACE ADMINISTRATION List of Subjects in 48 CFR Parts 2, 13, and 19 RIN 9000–AM89 Government procurement. 48 CFR Parts 8 and 13 [FAR Case 2015–015; Docket No. 2015– 0015; Sequence No. 1] Federal Acquisition Regulation: Strategic Sourcing Documentation Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. Dated: June 14, 2016. William Clark, Director, Office of Government-Wide Acquisition Policy, Office of Acquisition Policy, Office of Government-Wide Policy. AGENCY: Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR parts 2, 13, and 19, as set forth below: SUMMARY: 1. The authority citation for 48 CFR parts 2, 13, and 19 continues to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 2—DEFINITIONS WORDS AND TERMS 2.101 [Amended] 2. Amend the definition ‘‘Simplified acquisition threshold’’ in paragraph (b) of section 2.101 by: ■ a. Removing from paragraph (1) ‘‘$300,000’’ and adding in its place ‘‘$750,000’’; and ■ b. Removing from paragraph (2) ‘‘$1 million’’ and adding in its place ‘‘$1.5 million’’. ■ PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement a section of the Carl Levin and Howard P. ‘‘Buck’’ McKeon National Defense Authorization Act for Fiscal Year 2015 that provides that the contract file shall contain certain documentation if the Federal Government makes a purchase of supplies and services offered under the Federal Strategic Sourcing Initiative (FSSI), but the FSSI is not used. DATES: Interested parties should submit comments to the Regulatory Secretariat Division at one of the addresses shown below on or before August 19, 2016 to be considered in the formulation of a final rule. ADDRESSES: Submit comments in response to FAR case 2015–015 by any of the following methods: • Regulations.gov: https:// www.regulations.gov. E:\FR\FM\20JNP1.SGM 20JNP1 39884 Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Proposed Rules Submit comments via the Federal eRulemaking portal by searching for ‘‘FAR Case 2015–015’’.’’ Select the link ‘‘Comment Now’’ that corresponds with ‘‘FAR Case 2015–015.’’ Follow the instructions provided on the screen. Please include your name, company name (if any), and ‘‘FAR Case 2015– 015’’ on your attached document(s). • Mail: General Services Administration, Regulatory Secretariat Division, ATTN: Ms. Flowers, 1800 F Street NW., 2nd floor, Washington, DC 20405. Instructions: Please submit comments only and cite ‘‘FAR case 2015–015’’ in all correspondence related to this case. Comments received will generally be posted without change to https:// www.regulations.gov, including any personal and/or business confidential information provided. To confirm receipt of your comment, please check www.regulations.gov, approximately two to three business days after submission to verify posting (except allow 30 days for posting of comments submitted by mail.) FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202– 501–4755. Please cite ‘‘FAR Case 2015– 015.’’ SUPPLEMENTARY INFORMATION: asabaliauskas on DSK3SPTVN1PROD with PROPOSALS I. Background Section 836 of the Carl Levin and Howard P. ‘‘Buck’’ McKeon National Defense Authorization Act for Fiscal Year 2015 (NDAA) (Pub. L. 113–291) was enacted on December 19, 2014. This provision is part of subtitle D, Federal Information Technology Acquisition Reform, of title VIII of the NDAA. It established that when the Federal Government makes a purchase of supplies or services offered under the Federal Strategic Sourcing Initiative (FSSI), but the FSSI is not used, the contract file for the purchase shall include a brief analysis of the comparative value, including price and nonprice factors, between the supplies and services offered under the FSSI and those offered under the source(s) to be used for the purchase. The goals and benefits of the FSSI Program as taken directly from the FSSI strategic sourcing Web site (www.strategicsourcing.gov) are— Strategic sourcing is the structured and collaborative process of critically analyzing an organization’s spending patterns to better leverage its purchasing VerDate Sep<11>2014 19:01 Jun 17, 2016 Jkt 238001 power, reduce costs, and improve overall performance. The primary goals of FSSI are to— • Strategically source across federal agencies; • Establish mechanisms to increase total cost savings, value, and socioeconomic participation; • Collaborate with industry to develop optimal solutions; • Share best practices; and • Create a strategic sourcing community of practice. Strategic Sourcing drives both dollar savings and process improvements. The Federal Government, suppliers and ultimately the U.S. taxpayers benefit when government can better articulate its requirements and provide committed purchase volumes, and in return, industry suppliers can provide better pricing and more valuable solutions. Specific benefits of Strategic Sourcing include— • Meet OMB’s goal for crossgovernment participation; • Assist with socioeconomic goals; • Collect and analyze data; • Identify trends; • Re-engineer high cost business processes; • Replicate cost-saving business processes; • Share lessons learned and best practices; • Realize cost efficiencies; • Streamline procurement process; and • Drive additional discounts. By ensuring consideration of strategically sourced vehicles, the proposed documentation requirement will raise the visibility of these solutions, promote their use, and help to better leverage the Government’s buying power. This proposed rule complements other efforts and strategies being developed under the Category Management Initiative, which builds on the success of strategic sourcing by managing entire categories of common purchases across the Government and utilizing teams of experts to manage those specific categories to drive down total cost and improve performance. See Transforming the Federal Marketplace: Simplifying Federal Procurement to Drive Performance, Drive Innovation, and Increase Savings (December 4, 2014) available at https:// www.whitehouse.gov/sites/default/files/ omb/procurement/memo/simplifyingfederal-procurement-to-improveperformance-drive-innovation-increasesavings.pdf. II. Proposed FAR Changes The purpose of the proposed FAR changes is to update FAR 8.004 to add PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 the requirements established by section 836. Additionally, FAR 13.301 is updated to clarify that for micropurchases made using the governmentwide purchase card, purchase card holders shall follow the documentation requirements in Appendix B of OMB Circular A–123 (available at https:// www.whitehouse.gov/sites/default/files/ omb/assets/omb/circulars/a123/a123_ appendix_b.pdf), which prescribes management guidance on the use of purchase cards. This new FAR rulemaking requires contracting officers when purchasing supplies or services that are offered under the FSSI, but the FSSI is not used, to document the contract file to include a brief analysis of the comparative value, including price and nonprice factors, between the supplies and services offered under the FSSI and those offered under the source(s) to be used for the purchase. III. Applicability to Contracts for Amounts not Greater Than the Simplified Acquisition Threshold (SAT), Commercial Items, and Commercially Available Off-the-Shelf (COTS) Items 41 U.S.C. 1905 governs the applicability of laws to contracts or subcontracts in amounts not greater than the SAT. 41 U.S.C. 1906 requires that the FAR include a list of provisions of law that are inapplicable to the acquisition of commercial items (other than the acquisition of commercially available off-the-shelf (COTS) items). 41 U.S.C. 1907 requires that the FAR include a list of provisions of law that are inapplicable to the acquisition of COTS items. It is anticipated that at the time of the final rule the FAR Council will approve these determinations. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all 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 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to Office of Information and Regulatory Affairs (OIRA) review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September E:\FR\FM\20JNP1.SGM 20JNP1 Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Proposed Rules 30, 1993. This proposed rule is not a major rule under 5 U.S.C. 804. asabaliauskas on DSK3SPTVN1PROD with PROPOSALS V. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this proposed rule 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 the proposed rule only affects the internal operating procedures of the Government. However, an Initial Regulatory Flexibility Analysis (IRFA) was performed and is summarized as follows: This rule implements section 836 of the Carl Levin and Howard P. ‘‘Buck’’ McKeon National Defense Authorization Act for Fiscal Year 2015, which provides that the contract file shall contain certain documentation if the Federal Government makes a purchase of supplies and services offered under the Federal Strategic Sourcing Initiative (FSSI), but the FSSI is not used. The goal of the rule is to have contracting officers consider use of the GSA Federal Strategic Sourcing Initiative (FSSI) when purchasing items that are available through FSSI. According to the Federal Procurement Data System, in Fiscal Year 2014, the Federal Government made approximately 170,403 contract awards (not including modifications and orders), of which approximately 85,624 (50.25 percent) were awarded to about 43,545 unique small business entities. The rule requires action by contracting officers when purchasing items available through FSSI and will not directly affect any small entities. It specifically requires the contracting officer to place certain documentation in the contract file if the Federal Government makes a purchase of supplies and services offered under the Federal Strategic Sourcing Initiative (FSSI), but the FSSI is not used. The rule could indirectly affect small businesses that offer supplies or services under the FSSI as the rule will require contracting officers to consider FSSI vendors when they may not have done so in the past, and this could lead to more sales for those small businesses. There are currently 137 entities awarded under the FSSI, of which 78 (57 percent) are small entities. The required consideration of FSSI offerings does not directly have a negative effect on entities not awarded an FSSI contract, but the required contracting officer consideration and documentation requirement could indirectly lead to more purchases going to those vendors involved in the FSSI. An explicit goal of Federal strategic sourcing is to maintain and/or enhance socioeconomic goals. Partnering with small businesses during key stages of the strategic sourcing process will enable the FSSI to meet or exceed socio-economic goals. As part of the FSSI process, current spending with small business is baselined for each initiative to gain an understanding of how much is being spent. Then sourcing strategies are developed that expand the business done VerDate Sep<11>2014 19:01 Jun 17, 2016 Jkt 238001 with targeted groups against that baseline, quantify the expected changes, and compare this with actual results as required by OMB guidance on strategic sourcing. Each participating agency will continue to be responsible for achieving its socio-economic goals and will need to evaluate the impact of FSSI sourcing recommendations. There is no reporting required by Government contractors, all action on the rule is internal to the Government. The rule does not duplicate, overlap, or conflict with any other Federal rules. No viable alternatives were determined at this rulemaking stage. ■ The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. DoD, GSA and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities. DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2015–015), in correspondence. 8.004 39885 VI. Paperwork Reduction Act The proposed rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act, 44 U.S.C. chapter 35. List of Subjects in 48 CFR Parts 8 and 13 Government procurement. Dated: June 14, 2016. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA and NASA propose amending 48 CFR parts 8 and 13 as set forth below: ■ 1. The authority citation for 48 CFR parts 8 and 13 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES 2. Amend section 8.004 by— a. Redesignating paragraphs (a)(1) and (2) as paragraphs (a)(1)(i) and (ii), respectively; ■ b. Redesignating the introductory paragraph as paragraph (a)(1); ■ ■ PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 c. Removing from the newly designated paragraph (a)(1) ‘‘paragraph (a)’’ and ‘‘paragraph (b)’’ and adding ‘‘paragraph (a)(1)’’ and ‘‘paragraph (a)(2)’’ in their places, respectively; ■ d. Removing from the newly redesignated paragraph (a)(1)(ii) ‘‘paragraph (a)(1)’’ and adding ‘‘paragraph (a)(1)(i)’’ in its place; ■ e. Redesignating paragraph (b) as paragraph (a)(2); and ■ f. Adding new paragraph (b). The addition reads as follows: Use of other sources. * * * * * (b) Documentation requirements relating to the Federal Strategic Sourcing Initiative (FSSI). When purchasing supplies or services that are offered under the FSSI, but the FSSI is not used, the contract file shall be documented to include a brief analysis of the comparative value, including price and nonprice factors, between the supplies and services offered under the FSSI and those offered under the source(s) to be used for the purchase (section 836 of Pub. L. 113–291). PART 13—SIMPLIFIED ACQUISITION PROCEDURES 3. Amend section 13.301 by revising paragraph (b) to read as follows: ■ 13.301 Governmentwide commercial purchase card. * * * * * (b)(1) Agencies using the Governmentwide commercial purchase card shall establish procedures for use and control of the card that comply with the Treasury Financial Manual for Guidance of Departments and Agencies (TFM 4–4500) (available at https:// tfm.fiscal.treasury.gov/v1/p4/c450.html, the Office of Management and Budget’s Circular A–123, Appendix B (available at https://www.whitehouse.gov/sites/ default/files/omb/assets/omb/circulars/ a123/a123_appendix_b.pdf), and that are consistent with the terms and conditions of the current GSA credit card contract. (2) Agency procedures should not limit the use of the Governmentwide commercial purchase card to micropurchases. Agency procedures should encourage use of the card in greater dollar amounts by contracting officers to place orders and to pay for purchases against contracts established under part 8 procedures, when authorized; and to place orders and/or make payment under other contractual instruments, when agreed to by the contractor. See 32.1110(d) for instructions for use of the appropriate clause when payment under E:\FR\FM\20JNP1.SGM 20JNP1 39886 Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Proposed Rules a written contract will be made through use of the card. * * * * * [FR Doc. 2016–14412 Filed 6–17–16; 8:45 am] asabaliauskas on DSK3SPTVN1PROD with PROPOSALS BILLING CODE 6820–EP–P VerDate Sep<11>2014 19:01 Jun 17, 2016 Jkt 238001 PO 00000 Frm 00014 Fmt 4702 Sfmt 9990 E:\FR\FM\20JNP1.SGM 20JNP1

Agencies

[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)]
[Proposed Rules]
[Pages 39883-39886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14412]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8 and 13

[FAR Case 2015-015; Docket No. 2015-0015; Sequence No. 1]
RIN 9000-AM89

Federal Acquisition Regulation: Strategic Sourcing Documentation

AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to implement a section of the Carl Levin
and Howard P. ``Buck'' McKeon National Defense Authorization Act for
Fiscal Year 2015 that provides that the contract file shall contain
certain documentation if the Federal Government makes a purchase of
supplies and services offered under the Federal Strategic Sourcing
Initiative (FSSI), but the FSSI is not used.

DATES: Interested parties should submit comments to the Regulatory
Secretariat Division at one of the addresses shown below on or before
August 19, 2016 to be considered in the formulation of a final rule.

ADDRESSES: Submit comments in response to FAR case 2015-015 by any of
the following methods:
Regulations.gov: https://www.regulations.gov.

[[Page 39884]]

Submit comments via the Federal eRulemaking portal by searching for
``FAR Case 2015-015''.'' Select the link ``Comment Now'' that
corresponds with ``FAR Case 2015-015.'' Follow the instructions
provided on the screen. Please include your name, company name (if
any), and ``FAR Case 2015-015'' on your attached document(s).
Mail: General Services Administration, Regulatory
Secretariat Division, ATTN: Ms. Flowers, 1800 F Street NW., 2nd floor,
Washington, DC 20405.
Instructions: Please submit comments only and cite ``FAR case 2015-
015'' in all correspondence related to this case. Comments received
will generally be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided. To confirm receipt of your comment, please check
www.regulations.gov, approximately two to three business days after
submission to verify posting (except allow 30 days for posting of
comments submitted by mail.)

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Mr. Michael O. Jackson, Procurement Analyst, at 202-208-4949. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat Division at 202-501-4755. Please cite ``FAR Case
2015-015.''

SUPPLEMENTARY INFORMATION:

I. Background

Section 836 of the Carl Levin and Howard P. ``Buck'' McKeon
National Defense Authorization Act for Fiscal Year 2015 (NDAA) (Pub. L.
113-291) was enacted on December 19, 2014. This provision is part of
subtitle D, Federal Information Technology Acquisition Reform, of title
VIII of the NDAA. It established that when the Federal Government makes
a purchase of supplies or services offered under the Federal Strategic
Sourcing Initiative (FSSI), but the FSSI is not used, the contract file
for the purchase shall include a brief analysis of the comparative
value, including price and nonprice factors, between the supplies and
services offered under the FSSI and those offered under the source(s)
to be used for the purchase. The goals and benefits of the FSSI Program
as taken directly from the FSSI strategic sourcing Web site
(www.strategicsourcing.gov) are--
Strategic sourcing is the structured and collaborative process of
critically analyzing an organization's spending patterns to better
leverage its purchasing power, reduce costs, and improve overall
performance. The primary goals of FSSI are to--
Strategically source across federal agencies;
Establish mechanisms to increase total cost savings,
value, and socioeconomic participation;
Collaborate with industry to develop optimal solutions;
Share best practices; and
Create a strategic sourcing community of practice.
Strategic Sourcing drives both dollar savings and process
improvements. The Federal Government, suppliers and ultimately the U.S.
taxpayers benefit when government can better articulate its
requirements and provide committed purchase volumes, and in return,
industry suppliers can provide better pricing and more valuable
solutions. Specific benefits of Strategic Sourcing include--
Meet OMB's goal for cross-government participation;
Assist with socioeconomic goals;
Collect and analyze data;
Identify trends;
Re-engineer high cost business processes;
Replicate cost-saving business processes;
Share lessons learned and best practices;
Realize cost efficiencies;
Streamline procurement process; and
Drive additional discounts.
By ensuring consideration of strategically sourced vehicles, the
proposed documentation requirement will raise the visibility of these
solutions, promote their use, and help to better leverage the
Government's buying power.
This proposed rule complements other efforts and strategies being
developed under the Category Management Initiative, which builds on the
success of strategic sourcing by managing entire categories of common
purchases across the Government and utilizing teams of experts to
manage those specific categories to drive down total cost and improve
performance. See Transforming the Federal Marketplace: Simplifying
Federal Procurement to Drive Performance, Drive Innovation, and
Increase Savings (December 4, 2014) available at https://www.whitehouse.gov/sites/default/files/omb/procurement/memo/simplifying-federal-procurement-to-improve-performance-drive-innovation-increase-savings.pdf.

II. Proposed FAR Changes

The purpose of the proposed FAR changes is to update FAR 8.004 to
add the requirements established by section 836. Additionally, FAR
13.301 is updated to clarify that for micro-purchases made using the
governmentwide purchase card, purchase card holders shall follow the
documentation requirements in Appendix B of OMB Circular A-123
(available at https://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a123/a123_appendix_b.pdf), which prescribes
management guidance on the use of purchase cards.
This new FAR rulemaking requires contracting officers when
purchasing supplies or services that are offered under the FSSI, but
the FSSI is not used, to document the contract file to include a brief
analysis of the comparative value, including price and nonprice
factors, between the supplies and services offered under the FSSI and
those offered under the source(s) to be used for the purchase.

III. Applicability to Contracts for Amounts not Greater Than the
Simplified Acquisition Threshold (SAT), Commercial Items, and
Commercially Available Off-the-Shelf (COTS) Items

41 U.S.C. 1905 governs the applicability of laws to contracts or
subcontracts in amounts not greater than the SAT. 41 U.S.C. 1906
requires that the FAR include a list of provisions of law that are
inapplicable to the acquisition of commercial items (other than the
acquisition of commercially available off-the-shelf (COTS) items). 41
U.S.C. 1907 requires that the FAR include a list of provisions of law
that are inapplicable to the acquisition of COTS items. It is
anticipated that at the time of the final rule the FAR Council will
approve these determinations.

IV. Executive Orders 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all 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 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action and, therefore, was subject to
Office of Information and Regulatory Affairs (OIRA) review under
Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated
September

[[Page 39885]]

30, 1993. This proposed rule is not a major rule under 5 U.S.C. 804.

V. Regulatory Flexibility Act

DoD, GSA, and NASA do not expect this proposed rule 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 the proposed rule only affects the internal operating
procedures of the Government.
However, an Initial Regulatory Flexibility Analysis (IRFA) was
performed and is summarized as follows:

This rule implements section 836 of the Carl Levin and Howard P.
``Buck'' McKeon National Defense Authorization Act for Fiscal Year
2015, which provides that the contract file shall contain certain
documentation if the Federal Government makes a purchase of supplies
and services offered under the Federal Strategic Sourcing Initiative
(FSSI), but the FSSI is not used.
The goal of the rule is to have contracting officers consider
use of the GSA Federal Strategic Sourcing Initiative (FSSI) when
purchasing items that are available through FSSI.
According to the Federal Procurement Data System, in Fiscal Year
2014, the Federal Government made approximately 170,403 contract
awards (not including modifications and orders), of which
approximately 85,624 (50.25 percent) were awarded to about 43,545
unique small business entities. The rule requires action by
contracting officers when purchasing items available through FSSI
and will not directly affect any small entities. It specifically
requires the contracting officer to place certain documentation in
the contract file if the Federal Government makes a purchase of
supplies and services offered under the Federal Strategic Sourcing
Initiative (FSSI), but the FSSI is not used. The rule could
indirectly affect small businesses that offer supplies or services
under the FSSI as the rule will require contracting officers to
consider FSSI vendors when they may not have done so in the past,
and this could lead to more sales for those small businesses. There
are currently 137 entities awarded under the FSSI, of which 78 (57
percent) are small entities. The required consideration of FSSI
offerings does not directly have a negative effect on entities not
awarded an FSSI contract, but the required contracting officer
consideration and documentation requirement could indirectly lead to
more purchases going to those vendors involved in the FSSI.
An explicit goal of Federal strategic sourcing is to maintain
and/or enhance socio-economic goals. Partnering with small
businesses during key stages of the strategic sourcing process will
enable the FSSI to meet or exceed socio-economic goals. As part of
the FSSI process, current spending with small business is baselined
for each initiative to gain an understanding of how much is being
spent. Then sourcing strategies are developed that expand the
business done with targeted groups against that baseline, quantify
the expected changes, and compare this with actual results as
required by OMB guidance on strategic sourcing. Each participating
agency will continue to be responsible for achieving its socio-
economic goals and will need to evaluate the impact of FSSI sourcing
recommendations.
There is no reporting required by Government contractors, all
action on the rule is internal to the Government.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
No viable alternatives were determined at this rulemaking stage.

The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. DoD, GSA and NASA invite comments from small
business concerns and other interested parties on the expected impact
of this rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-015),
in correspondence.

VI. Paperwork Reduction Act

The proposed rule does not contain any information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act, 44 U.S.C. chapter 35.

List of Subjects in 48 CFR Parts 8 and 13

Government procurement.

Dated: June 14, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA and NASA propose amending 48 CFR parts 8 and 13
as set forth below:

0
1. The authority citation for 48 CFR parts 8 and 13 continues to read
as follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

0
2. Amend section 8.004 by--
0
a. Redesignating paragraphs (a)(1) and (2) as paragraphs (a)(1)(i) and
(ii), respectively;
0
b. Redesignating the introductory paragraph as paragraph (a)(1);
0
c. Removing from the newly designated paragraph (a)(1) ``paragraph
(a)'' and ``paragraph (b)'' and adding ``paragraph (a)(1)'' and
``paragraph (a)(2)'' in their places, respectively;
0
d. Removing from the newly redesignated paragraph (a)(1)(ii)
``paragraph (a)(1)'' and adding ``paragraph (a)(1)(i)'' in its place;
0
e. Redesignating paragraph (b) as paragraph (a)(2); and
0
f. Adding new paragraph (b).
The addition reads as follows:

8.004 Use of other sources.

* * * * *
(b) Documentation requirements relating to the Federal Strategic
Sourcing Initiative (FSSI). When purchasing supplies or services that
are offered under the FSSI, but the FSSI is not used, the contract file
shall be documented to include a brief analysis of the comparative
value, including price and nonprice factors, between the supplies and
services offered under the FSSI and those offered under the source(s)
to be used for the purchase (section 836 of Pub. L. 113-291).

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

0
3. Amend section 13.301 by revising paragraph (b) to read as follows:

13.301 Governmentwide commercial purchase card.

* * * * *
(b)(1) Agencies using the Governmentwide commercial purchase card
shall establish procedures for use and control of the card that comply
with the Treasury Financial Manual for Guidance of Departments and
Agencies (TFM 4-4500) (available at https://tfm.fiscal.treasury.gov/v1/p4/c450.html, the Office of Management and Budget's Circular A-123,
Appendix B (available at https://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a123/a123_appendix_b.pdf), and that are
consistent with the terms and conditions of the current GSA credit card
contract.
(2) Agency procedures should not limit the use of the
Governmentwide commercial purchase card to micro-purchases. Agency
procedures should encourage use of the card in greater dollar amounts
by contracting officers to place orders and to pay for purchases
against contracts established under part 8 procedures, when authorized;
and to place orders and/or make payment under other contractual
instruments, when agreed to by the contractor. See 32.1110(d) for
instructions for use of the appropriate clause when payment under

[[Page 39886]]

a written contract will be made through use of the card.
* * * * *
[FR Doc. 2016-14412 Filed 6-17-16; 8:45 am]
BILLING CODE 6820-EP-P

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