Defense Federal Acquisition Regulation Supplement; Competition Requirements for Federal Supply Schedules and Multiple Award Contracts, 14106-14108 [06-2640]
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14106
Federal Register / Vol. 71, No. 54 / Tuesday, March 21, 2006 / Rules and Regulations
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contract action for the same requirement
would not be considered consolidation.
DoD Response: If two or more items
were previously acquired under a single
contract, and the follow-on acquisition
is for the same requirement, the followon acquisition would not meet the
definition of consolidation, unless it is
further combined with other
requirements.
25. Comment: One respondent asked
whether a contract for support services
at a dining facility that includes mess
attendant services and full food
(cooking) is covered by the DFARS rule.
DoD Response: Whether this situation
is covered depends upon how the
requirements were previously
performed. The DFARS rule applies
when the required supplies or services
previously were acquired under two or
more separate contracts, but now will be
acquired under one.
26. Comment: Two respondents
recommended that coverage be included
in the DoD 5000 series publications as
to what an acquisition strategy must
include before contracts with a total
value exceeding $5,000,000 can be
consolidated.
DoD Response: DoD considers the
comment to be outside the scope of this
DFARS rule. However, this
recommendation has been forwarded to
the Defense Acquisition Policy Working
Group for consideration.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared a final regulatory
flexibility analysis consistent with 5
U.S.C. 604. A copy of the analysis may
be obtained from the point of contact
specified herein. The analysis is
summarized as follows:
This final rule amends the DFARS to
implement Section 801 of the National
Defense Authorization Act for Fiscal
Year 2004 (Pub. L. 108–136). Section
801 added 10 U.S.C. 2382, which places
restrictions on the consolidation of two
or more requirements of a DoD
department, agency, or activity into a
single solicitation and contract, when
the total value of the requirements
exceeds $5,000,000. The objective of the
rule is to ensure that decisions regarding
consolidation of contract requirements
are made with a view toward providing
small business concerns with
appropriate opportunities to participate
in DoD procurements as prime
contractors and subcontractors. DoD
received no public comments in
response to the initial regulatory
flexibility analysis. As a result of public
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comments received on the interim rule,
the final rule contains changes that
clarify the applicability of the rule and
the requirements for market research.
The rule will apply to small entities that
are interested in providing supplies or
services under DoD contracts or
subcontracts. There are no known
alternatives that would accomplish the
objectives of 10 U.S.C. 2382. The impact
on small entities is expected to be
positive.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply, because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 207,
210, and 219
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Accordingly, the interim rule
amending 48 CFR parts 207 and 219,
which was published at 69 FR 55986 on
September 17, 2004, is adopted as a
final rule with the following changes:
I 1. The authority citation for 48 CFR
parts 207 and 219 continues to read as
follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 207—ACQUISITION PLANNING
2. Section 207.170–2 is revised to read
as follows:
I
207.170–2
Definitions.
Frm 00018
Fmt 4700
207.170–3
Policy and procedures.
(a) Agencies shall not consolidate
contract requirements with an estimated
total value exceeding $5,000,000 unless
the acquisition strategy includes—
*
*
*
*
*
(3) * * *
(i) Market research may indicate that
consolidation of contract requirements
is necessary and justified if the benefits
of the acquisition strategy substantially
exceed the benefits of each of the
possible alternative contracting
approaches. Benefits may include costs
and, regardless of whether quantifiable
in dollar amounts—
*
*
*
*
*
I 4. Part 210 is added to read as follows:
PART 210—MARKET RESEARCH
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
210.001
Policy.
(a) In addition to the requirements of
FAR 10.001(a), agencies shall—
(i) Conduct market research
appropriate to the circumstances before
soliciting offers for acquisitions that
could lead to a consolidation of contract
requirements as defined in 207.170–2;
and
(ii) Use the results of market research
to determine whether consolidation of
contract requirements is necessary and
justified in accordance with 207.170–3.
[FR Doc. 06–2646 Filed 3–20–06; 8:45 am]
BILLING CODE 5001–08–P
As used in this section—
Consolidation of contract
requirements means the use of a
solicitation to obtain offers for a single
contract or a multiple award contract to
satisfy two or more requirements of a
department, agency, or activity for
supplies or services that previously
have been provided to, or performed for,
that department, agency, or activity
under two or more separate contracts.
Multiple award contract means–
(1) Orders placed using a multiple
award schedule issued by the General
Services Administration as described in
FAR Subpart 8.4;
(2) A multiple award task order or
delivery order contract issued in
accordance with FAR Subpart 16.5; or
(3) Any other indefinite-delivery,
indefinite-quantity contract that an
agency enters into with two or more
sources for the same line item under the
same solicitation.
PO 00000
3. Section 207.170–3 is amended by
revising paragraph (a) introductory text
and paragraph (a)(3)(i) introductory text
to read as follows:
I
Sfmt 4700
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 208 and 216
[DFARS Case 2004–D009]
Defense Federal Acquisition
Regulation Supplement; Competition
Requirements for Federal Supply
Schedules and Multiple Award
Contracts
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
SUMMARY: DoD has issued a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to update and clarify
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Federal Register / Vol. 71, No. 54 / Tuesday, March 21, 2006 / Rules and Regulations
requirements for competition in the
placement of orders under Federal
Supply Schedules and multiple award
contracts.
Effective Date: March 21, 2006.
Ms.
Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3C132, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone (703) 602–0326;
facsimile (703) 602–0350. Please cite
DFARS Case 2004-D009.
SUPPLEMENTARY INFORMATION:
DATES:
FOR FURTHER INFORMATION CONTACT:
cprice-sewell on PROD1PC66 with RULES
A. Background
This final rule revises procedures for
use of Federal Supply Schedules and
multiple award contracts to promote
competition in the placement of orders
for supplies or services. The final rule—
• Revises approval requirements for
placement of noncompetitive orders
exceeding $100,000 under Federal
Supply Schedules for consistency with
those at FAR 8.405–6, and extends those
requirements to orders under multiple
award contracts;
• Applies the same ordering
procedures to both supplies and
services; and
• Makes additional changes to
DFARS Subpart 208.4 for consistency
with the policy in FAR Subpart 8.4.
DoD published a proposed rule at 70
FR 32280 on June 2, 2005. Four sources
submitted comments on the proposed
rule. A discussion of the comments is
provided below.
1. Comment: Recommend relocating
the last sentence of 208.405–70(c)(2),
which references the General Services
Administration’s electronic quote
system ‘‘e-Buy’’, to DoD’s Procedures,
Guidance, and Information (PGI)
resource, to be consistent with DFARS
Transformation.
DoD Response: DoD agrees and has
relocated the referenced text to PGI, at
https://www.acq.osd.mil/dpap/dars/pgi.
2. Comment: Recommend removing
the requirement to obtain three
proposals when ordering supplies under
GSA’s Federal Supply Schedule
program, because the requirement is
unduly burdensome and
administratively wasteful.
DoD Response: Do not agree. DoD has
adopted this policy to place the
appropriate emphasis on competition
and to ensure that DoD can continue to
use Federal Supply Schedules to meet
future requirements.
3. Comment: The requirement at FAR
8.405–6 for the senior procurement
executive to approve proposed orders
exceeding $50,000,000 for DoD, NASA,
and the Coast Guard is different from
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the policy at FAR 6.304(a)(4) for nonschedule buys, which only requires
senior procurement executive approval
for orders exceeding $75,000,000.
DoD Response: Federal Acquisition
Circular 2005–05 dated July 27, 2005
(70 FR 43576), amended the FAR to
make the thresholds at 8.405–6
consistent with those at 6.304(a)(4).
4. Comment: Recommend clarifying
the justification approval level for
waivers of competition when
establishing blanket purchase
agreements (BPAs), because BPAs may
have no estimated value, and the
existing requirements are based on
estimated dollar value.
DoD Response: An estimated value
should be established for a BPA as part
of acquisition planning, and the
approval level for the BPA should be
based on that estimated value.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this final rule will
not 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 strengthens and
clarifies existing requirements for
competition in the placement of orders
under Federal Supply Schedules and
multiple award contracts.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply, because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 208 and
216
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 208 and 216
are amended as follows:
I 1. The authority citation for 48 CFR
parts 208 and 216 continues to read as
follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 208—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
208.404
[Amended]
2. Section 208.404 is amended by
removing paragraphs (b) and (S–70).
I
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
208.404–1 through 208.405–2
[Removed]
I 3. Sections 208.404–1, 208.404–2,
208.404–70, 208.405, and 208.405–2 are
removed.
I 4. Sections 208.405–70, 208.406, and
208.406–1 are added to read as follows:
208.405–70 Additional ordering
procedures.
(a) This subsection—
(1) Implements Section 803 of the
National Defense Authorization Act for
Fiscal Year 2002 (Pub. L. 107–107) for
the acquisition of services, and
establishes similar policy for the
acquisition of supplies;
(2) Applies to orders for supplies or
services under Federal Supply
Schedules, including orders under
blanket purchase agreements
established under Federal Supply
Schedules; and
(3) Also applies to orders placed by
non-DoD agencies on behalf of DoD.
(b) Each order exceeding $100,000
shall be placed on a competitive basis
in accordance with paragraph (c) of this
subsection, unless this requirement is
waived on the basis of a justification
that is prepared and approved in
accordance with FAR 8.405–6 and
includes a written determination that—
(1) A statute expressly authorizes or
requires that the purchase be made from
a specified source; or
(2) One of the circumstances
described at FAR 16.505(b)(2)(i) through
(iii) applies to the order. Follow the
procedures at PGI 216.505–70 if FAR
16.505(b)(2)(ii) or (iii) is deemed to
apply.
(c) An order exceeding $100,000 is
placed on a competitive basis only if the
contracting officer provides a fair notice
of the intent to make the purchase,
including a description of the supplies
to be delivered or the services to be
performed and the basis upon which the
contracting officer will make the
selection, to—
(1) As many schedule contractors as
practicable, consistent with market
research appropriate to the
circumstances, to reasonably ensure that
offers will be received from at least
three contractors that can fulfill the
requirements, and the contracting
officer—
(i)(A) Receives offers from at least
three contractors that can fulfill the
requirements; or
(B) Determines in writing that no
additional contractors that can fulfill the
requirements could be identified despite
reasonable efforts to do so
(documentation should clearly explain
efforts made to obtain offers from at
least three contractors); and
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Federal Register / Vol. 71, No. 54 / Tuesday, March 21, 2006 / Rules and Regulations
(ii) Ensures all offers received are
fairly considered; or
(2) All contractors offering the
required supplies or services under the
applicable multiple award schedule,
and affords all contractors responding to
the notice a fair opportunity to submit
an offer and have that offer fairly
considered.
(d) See PGI 208.405–70 for additional
information regarding fair notice to
contractors and requirements relating to
the establishment of blanket purchase
agreements under Federal Supply
Schedules.
§ 208.406 Ordering activity
responsibilities.
§ 208.406–1
Order placement.
Follow the procedures at PGI
208.406–1 when ordering from
schedules.
PART 216—TYPES OF CONTRACTS
5. Section 216.505–70 is revised to
read as follows:
I
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§ 216.505–70
contracts.
Orders under multiple award
(a) This subsection—
(1) Implements Section 803 of the
National Defense Authorization Act for
Fiscal Year 2002 (Pub. L. 107–107) for
the acquisition of services, and
establishes similar policy for the
acquisition of supplies;
(2) Applies to orders for supplies or
services exceeding $100,000 placed
under multiple award contracts;
(3) Also applies to orders placed by
non-DoD agencies on behalf of DoD; and
(4) Does not apply to orders for
architect-engineer services, which shall
be placed in accordance with the
procedures in FAR Subpart 36.6.
(b) Each order exceeding $100,000
shall be placed on a competitive basis
in accordance with paragraph (c) of this
subsection, unless this requirement is
waived on the basis of a justification
that is prepared and approved in
accordance with FAR 8.405–6 and
includes a written determination that—
(1) A statute expressly authorizes or
requires that the purchase be made from
a specified source; or
(2) One of the circumstances
described at FAR 16.505(b)(2)(i) through
(iv) applies to the order. Follow the
procedures at PGI 216.505–70 if FAR
16.505(b)(2)(ii) or (iii) is deemed to
apply.
(c) An order exceeding $100,000 is
placed on a competitive basis only if the
contracting officer—
(1) Provides a fair notice of the intent
to make the purchase, including a
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15:05 Mar 20, 2006
Jkt 208001
description of the supplies to be
delivered or the services to be
performed and the basis upon which the
contracting officer will make the
selection, to all contractors offering the
required supplies or services under the
multiple award contract; and
(2) Affords all contractors responding
to the notice a fair opportunity to
submit an offer and have that offer fairly
considered.
(d) When using the procedures in this
subsection—
(1) The contracting officer should
keep contractor submission
requirements to a minimum;
(2) The contracting officer may use
streamlined procedures, including oral
presentations;
(3) The competition requirements in
FAR part 6 and the policies in FAR
Subpart 15.3 do not apply to the
ordering process, but the contracting
officer shall consider price or cost under
each order as one of the factors in the
selection decision; and
(4) The contracting officer should
consider past performance on earlier
orders under the contract, including
quality, timeliness, and cost control.
[FR Doc. 06–2640 Filed 3–20–06; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 215 and 216
[DFARS Case 2005–D003]
Defense Federal Acquisition
Regulation Supplement; Incentive
Program for Purchase of Capital
Assets Manufactured in the United
States
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
SUMMARY: DoD has adopted as final,
with changes, an interim rule amending
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement Section 822 of the National
Defense Authorization Act for Fiscal
Year 2004. Section 822 requires the
Secretary of Defense to establish an
incentive program for contractors to
purchase capital assets manufactured in
the United States, and to provide
consideration for offerors with eligible
capital assets in source selections for
major defense acquisition programs.
DATES: Effective March 21, 2006.
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
Ms.
Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3C132, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone (703) 602–0328;
facsimile (703) 602–0350. Please cite
DFARS Case 2005–D003.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
A. Background
DoD published an interim rule at 70
FR 29643 on May 24, 2005, to
implement Section 822 of the National
Defense Authorization Act for Fiscal
Year 2004 (Pub. L. 108–136). Section
822 added 10 U.S.C. 2436, which
requires the Secretary of Defense to (1)
establish an incentive program for
contractors to purchase capital assets
manufactured in the United States
under contracts for major defense
acquisition programs; and (2) provide
consideration for offerors with eligible
capital assets in source selections for
major defense acquisition programs.
Six respondents submitted comments
on the interim rule. A discussion of the
comments is provided below.
1. Comment: Some respondents
expressed concern about the future of
the U.S. machine tool industry and its
ability to help in the defense of the
United States. They discussed the
severe pressure from foreign
competition and asserted that the
machine tool industry in particular is
essential to the military industrial and
critical infrastructure base of the United
States.
DoD Response: DoD recognizes these
concerns and considers that the
incentive program in this DFARS rule
provides sufficient motivation for
vendors to consider the purchase of U.S.
machine tools for major defense
acquisition programs as well as for other
defense requirements.
2. Comment: One respondent stated
that the use of U.S. machine tools for
fulfilling defense contracts should be
mandatory.
DoD Response: The mandatory use of
U.S. machine tools would severely
affect DoD’s ability to manage its
contracts in terms of cost, schedule, and
performance and would negatively
impact DoD’s ability to meet warfighter
needs. Such an approach could deny
DoD the ability to select the contractor
that is most likely to provide the most
effective solution to DoD needs, simply
because that contractor did not possess
all U.S. machine tools. Further, if
defense contractors were forced to
acquire U.S. machine tools in order to
be responsive to DoD’s needs, the
expense of acquiring those tools
(estimated to be in the billions) would
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]]>Agencies
[Federal Register Volume 71, Number 54 (Tuesday, March 21, 2006)]
[Rules and Regulations]
[Pages 14106-14108]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2640]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 208 and 216
[DFARS Case 2004-D009]
Defense Federal Acquisition Regulation Supplement; Competition
Requirements for Federal Supply Schedules and Multiple Award Contracts
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to update and clarify
[[Page 14107]]
requirements for competition in the placement of orders under Federal
Supply Schedules and multiple award contracts.
DATES: Effective Date: March 21, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326;
facsimile (703) 602-0350. Please cite DFARS Case 2004-D009.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule revises procedures for use of Federal Supply
Schedules and multiple award contracts to promote competition in the
placement of orders for supplies or services. The final rule--
Revises approval requirements for placement of
noncompetitive orders exceeding $100,000 under Federal Supply Schedules
for consistency with those at FAR 8.405-6, and extends those
requirements to orders under multiple award contracts;
Applies the same ordering procedures to both supplies and
services; and
Makes additional changes to DFARS Subpart 208.4 for
consistency with the policy in FAR Subpart 8.4.
DoD published a proposed rule at 70 FR 32280 on June 2, 2005. Four
sources submitted comments on the proposed rule. A discussion of the
comments is provided below.
1. Comment: Recommend relocating the last sentence of 208.405-
70(c)(2), which references the General Services Administration's
electronic quote system ``e-Buy'', to DoD's Procedures, Guidance, and
Information (PGI) resource, to be consistent with DFARS Transformation.
DoD Response: DoD agrees and has relocated the referenced text to
PGI, at https://www.acq.osd.mil/dpap/dars/pgi.
2. Comment: Recommend removing the requirement to obtain three
proposals when ordering supplies under GSA's Federal Supply Schedule
program, because the requirement is unduly burdensome and
administratively wasteful.
DoD Response: Do not agree. DoD has adopted this policy to place
the appropriate emphasis on competition and to ensure that DoD can
continue to use Federal Supply Schedules to meet future requirements.
3. Comment: The requirement at FAR 8.405-6 for the senior
procurement executive to approve proposed orders exceeding $50,000,000
for DoD, NASA, and the Coast Guard is different from the policy at FAR
6.304(a)(4) for non-schedule buys, which only requires senior
procurement executive approval for orders exceeding $75,000,000.
DoD Response: Federal Acquisition Circular 2005-05 dated July 27,
2005 (70 FR 43576), amended the FAR to make the thresholds at 8.405-6
consistent with those at 6.304(a)(4).
4. Comment: Recommend clarifying the justification approval level
for waivers of competition when establishing blanket purchase
agreements (BPAs), because BPAs may have no estimated value, and the
existing requirements are based on estimated dollar value.
DoD Response: An estimated value should be established for a BPA as
part of acquisition planning, and the approval level for the BPA should
be based on that estimated value.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this final rule will not 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 strengthens and clarifies existing requirements for
competition in the placement of orders under Federal Supply Schedules
and multiple award contracts.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply, because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Parts 208 and 216
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 208 and 216 are amended as follows:
0
1. The authority citation for 48 CFR parts 208 and 216 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES
208.404 [Amended]
0
2. Section 208.404 is amended by removing paragraphs (b) and (S-70).
208.404-1 through 208.405-2 [Removed]
0
3. Sections 208.404-1, 208.404-2, 208.404-70, 208.405, and 208.405-2
are removed.
0
4. Sections 208.405-70, 208.406, and 208.406-1 are added to read as
follows:
208.405-70 Additional ordering procedures.
(a) This subsection--
(1) Implements Section 803 of the National Defense Authorization
Act for Fiscal Year 2002 (Pub. L. 107-107) for the acquisition of
services, and establishes similar policy for the acquisition of
supplies;
(2) Applies to orders for supplies or services under Federal Supply
Schedules, including orders under blanket purchase agreements
established under Federal Supply Schedules; and
(3) Also applies to orders placed by non-DoD agencies on behalf of
DoD.
(b) Each order exceeding $100,000 shall be placed on a competitive
basis in accordance with paragraph (c) of this subsection, unless this
requirement is waived on the basis of a justification that is prepared
and approved in accordance with FAR 8.405-6 and includes a written
determination that--
(1) A statute expressly authorizes or requires that the purchase be
made from a specified source; or
(2) One of the circumstances described at FAR 16.505(b)(2)(i)
through (iii) applies to the order. Follow the procedures at PGI
216.505-70 if FAR 16.505(b)(2)(ii) or (iii) is deemed to apply.
(c) An order exceeding $100,000 is placed on a competitive basis
only if the contracting officer provides a fair notice of the intent to
make the purchase, including a description of the supplies to be
delivered or the services to be performed and the basis upon which the
contracting officer will make the selection, to--
(1) As many schedule contractors as practicable, consistent with
market research appropriate to the circumstances, to reasonably ensure
that offers will be received from at least three contractors that can
fulfill the requirements, and the contracting officer--
(i)(A) Receives offers from at least three contractors that can
fulfill the requirements; or
(B) Determines in writing that no additional contractors that can
fulfill the requirements could be identified despite reasonable efforts
to do so (documentation should clearly explain efforts made to obtain
offers from at least three contractors); and
[[Page 14108]]
(ii) Ensures all offers received are fairly considered; or
(2) All contractors offering the required supplies or services
under the applicable multiple award schedule, and affords all
contractors responding to the notice a fair opportunity to submit an
offer and have that offer fairly considered.
(d) See PGI 208.405-70 for additional information regarding fair
notice to contractors and requirements relating to the establishment of
blanket purchase agreements under Federal Supply Schedules.
Sec. 208.406 Ordering activity responsibilities.
Sec. 208.406-1 Order placement.
Follow the procedures at PGI 208.406-1 when ordering from
schedules.
PART 216--TYPES OF CONTRACTS
0
5. Section 216.505-70 is revised to read as follows:
Sec. 216.505-70 Orders under multiple award contracts.
(a) This subsection--
(1) Implements Section 803 of the National Defense Authorization
Act for Fiscal Year 2002 (Pub. L. 107-107) for the acquisition of
services, and establishes similar policy for the acquisition of
supplies;
(2) Applies to orders for supplies or services exceeding $100,000
placed under multiple award contracts;
(3) Also applies to orders placed by non-DoD agencies on behalf of
DoD; and
(4) Does not apply to orders for architect-engineer services, which
shall be placed in accordance with the procedures in FAR Subpart 36.6.
(b) Each order exceeding $100,000 shall be placed on a competitive
basis in accordance with paragraph (c) of this subsection, unless this
requirement is waived on the basis of a justification that is prepared
and approved in accordance with FAR 8.405-6 and includes a written
determination that--
(1) A statute expressly authorizes or requires that the purchase be
made from a specified source; or
(2) One of the circumstances described at FAR 16.505(b)(2)(i)
through (iv) applies to the order. Follow the procedures at PGI
216.505-70 if FAR 16.505(b)(2)(ii) or (iii) is deemed to apply.
(c) An order exceeding $100,000 is placed on a competitive basis
only if the contracting officer--
(1) Provides a fair notice of the intent to make the purchase,
including a description of the supplies to be delivered or the services
to be performed and the basis upon which the contracting officer will
make the selection, to all contractors offering the required supplies
or services under the multiple award contract; and
(2) Affords all contractors responding to the notice a fair
opportunity to submit an offer and have that offer fairly considered.
(d) When using the procedures in this subsection--
(1) The contracting officer should keep contractor submission
requirements to a minimum;
(2) The contracting officer may use streamlined procedures,
including oral presentations;
(3) The competition requirements in FAR part 6 and the policies in
FAR Subpart 15.3 do not apply to the ordering process, but the
contracting officer shall consider price or cost under each order as
one of the factors in the selection decision; and
(4) The contracting officer should consider past performance on
earlier orders under the contract, including quality, timeliness, and
cost control.
[FR Doc. 06-2640 Filed 3-20-06; 8:45 am]
BILLING CODE 5001-08-P
