General Services Acquisition Regulation; GSAR Case 2006-G504; Rewrite of GSAR Part 516; Types of Contracts, 39275-39277 [E8-15587]

Download as PDF Federal Register / Vol. 73, No. 132 / Wednesday, July 9, 2008 / Proposed Rules We will publish an appropriate amendment to 39 CFR part 111 if our proposal is adopted. Neva Watson, Attorney, Legislative. [FR Doc. E8–15212 Filed 7–8–08; 8:45 am] BILLING CODE 7710–12–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2006–0186, FRL–8569–7] Revisions to the California State Implementation Plan, Northern Sierra Air Quality Management District, Including the Nevada County Air Pollution Control District Portion, Plumas County Air Pollution Control District Portion, and Sierra County Air Pollution Control District Portion Environmental Protection Agency (EPA). ACTION: Proposed rule. jlentini on PROD1PC65 with PROPOSALS AGENCY: SUMMARY: EPA is proposing to approve revisions to the Northern Sierra Air Quality Management District (NSAQMD) portion of the California State Implementation Plan (SIP), including the Nevada County Air Pollution Control District (NCAPCD) portion, Plumas County Air Pollution Control District (PCAPCD) portion, and Sierra County Air Pollution Control District (PCAPCD) portion of the SIP. These revisions concern the permitting of air pollution sources. We are approving and removing local rules under authority of the Clean Air Act as amended in 1990 (CAA or the Act). DATES: Any comments on this proposal must arrive by August 8, 2008. ADDRESSES: Submit comments, identified by docket number EPA–R09– OAR–2006–0186, by one of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the on-line instructions. • E-mail: R9airpermits@epa.gov. • Mail or deliver: Gerardo Rios (Air3), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105. Instructions: All comments will be included in the public docket without change and may be made available online at https://www.regulations.gov, including any personal information provided, unless the comment includes Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected VerDate Aug<31>2005 20:05 Jul 08, 2008 Jkt 214001 should be clearly identified as such and should not be submitted through https:// www.regulations.gov or e-mail. https:// www.regulations.gov is an ‘‘anonymous access’’ system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send e-mail directly to EPA, your e-mail address will be automatically captured and included as part of the public comment. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Docket: The index to the docket for this action is available electronically at https://www.regulations.gov and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While all documents in the docket are listed in the index, some information may be publicly available only at the hard copy location (e.g., copyrighted material), and some may not be publicly available in either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed below. FOR FURTHER INFORMATION CONTACT: Laura Yannayon, Permits Office (AIR– 3), U.S. Environmental Protection Agency, Region IX, (415) 972–3534, yannayon.laura@epa.gov. This proposal addresses the approval of NSAQMD Rules 501, 505, 510, 511, 512, 513, 515, and 517 into the SIP and the removal of eight NCAPCD, two PCAPCD, and four SCAPCD permitting rules from the SIP. In the Rules section of this Federal Register, we are approving revisions in these local rules in a direct final action without prior proposal because we believe these SIP revisions are not controversial. If we receive adverse comments, however, we will publish a timely withdrawal of the direct final rule and address the comments in subsequent action based on this proposed rule. Please note that if we receive adverse comment on an amendment, paragraph, or section of this rule and if that provision may be severed from the remainder of the rule, we may adopt as final those provisions of the rule that are not the subject of an adverse comment. We do not plan to open a second comment period, so anyone interested in commenting should do so at this time. If we do not receive adverse comments, no further activity is planned. For further information, please see the direct final action. SUPPLEMENTARY INFORMATION: PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 39275 Dated: April 16, 2008. Laura Yoshii, Acting Regional Administrator, Region IX. [FR Doc. E8–15436 Filed 7–8–08; 8:45 am] BILLING CODE 6560–50–P GENERAL SERVICES ADMINISTRATION 48 CFR Parts 516 and 552 [GSAR Case 2006–G504; Docket 2008–0007; Sequence 7] RIN 3090–AI58 General Services Acquisition Regulation; GSAR Case 2006–G504; Rewrite of GSAR Part 516; Types of Contracts Office of the Chief Acquisition Officer, General Services Administration (GSA). ACTION: Proposed rule. AGENCY: SUMMARY: The General Services Administration (GSA) is proposing to amend the General Services Acquisition Regulation (GSAR) to revise language pertaining to requirements for types of contracts. DATES: Interested parties should submit written comments to the Regulatory Secretariat on or before September 8, 2008 to be considered in the formulation of a final rule. ADDRESSES: Submit comments identified by GSAR Case 2006–G504 by any of the following methods: • Regulations.gov: https:// www.regulations.gov.Submit comments via the Federal eRulemaking portal by inputting ‘‘GSAR Case 2006–G504’’ under the heading ‘‘Comment or Submission.’’ Select the link ‘‘Send a Comment or Submission ’’ that corresponds with GSAR Case 2006– G504. Follow the instructions provided to complete the ‘‘Public Comment and Submission Form.’’ Please include your name, company name (if any), and ‘‘GSAR Case 2006–G504’’ on your attached document. • Fax: 202–501–4067. • Mail: General Services Administration, Regulatory Secretariat Division (VPR), 1800 F Street, NW, Room 4041, ATTN: Laurieann Duarte, Washington, DC 20405. Instructions: Please submit comments only and cite GSAR Case 2006–G504 in all correspondence related to this case. All comments received will be posted without change to https:// www.regulations.gov, including any personal and/or business confidential information provided. E:\FR\FM\09JYP1.SGM 09JYP1 39276 Federal Register / Vol. 73, No. 132 / Wednesday, July 9, 2008 / Proposed Rules For clarification of content, contact Ms. Cecelia Davis at (202) 219–0202, or by e-mail at Cecelia.Davis@gsa.gov. For information pertaining to the status or publication schedules, contact the Regulatory Secretariat (VPR), Room 4035, GS Building, Washington, DC 20405, (202) 501–4755. Please cite GSAR Case 2006–G504. SUPPLEMENTARY INFORMATION: jlentini on PROD1PC65 with PROPOSALS FOR FURTHER INFORMATION CONTACT: A. Background The General Services Administration (GSA) is amending the General Services Administration Acquisition Regulation (GSAR) to revise the prescriptions for clauses included in GSAR 516.203–4, Contract clauses, and GSAR 516.506, Solicitation provisions and contract clauses, and to make minor changes to GSAR 516.603–3, Limitations. The associated clauses located in GSAR 552.216 are amended to relocate the clause at 552.216–70, Economic Price Adjustment—FSS Multiple Award Schedule Contracts, to GSAR 552.238, to retain the clause at 552.216–71, Economic Price Adjustment-Stock and Special Order Program Contracts, to revise GSAR clause 552.216–72, Placement of Orders, to make minor edits to GSAR clause 552.216–73, Ordering Information, and to include new GSAR clause 552.216–XX, TaskOrder and Delivery-Order Ombudsman. This proposed rule is a result of the General Services Administration Acquisition Manual (GSAM) Rewrite initiative. The initiative was undertaken by GSA to revise the GSAM to maintain consistency with the FAR and implement streamlined and innovative acquisition procedures that contractors, offerors, and GSA contracting personnel can utilize when entering into and administering contractual relationships. The GSAM incorporates the General Services Administration Acquisition Regulation (GSAR) as well as internal agency acquisition policy. GSA will rewrite each part of the GSAR and GSAM, and as each GSAR part is rewritten, will publish it in the Federal Register. This proposed rule revises GSAR 516.203–4, Contract clauses, 516.506, Solicitation provisions and contract clauses, and associated clauses in GSAR 552.516. The information in GSAR 516.203–4(a) is relocated to GSAR Part 538 and paragraph (b) is renumbered accordingly and contains minor edits. GSAR 516.506 is revised to delete paragraphs (b), (c), (d), and (e) from this part and relocate them to GSAR Part 538. New GSAR clause, 552.216–XX, Task–Order and Delivery–Order Ombudsman, is added to describe the VerDate Aug<31>2005 20:05 Jul 08, 2008 Jkt 214001 GSA Ombudsman’s responsibilities. GSAR 516.603–3, Limitations, is renumbered as 516.603–70 as a supplement to the FAR and the title is changed to ‘‘Limitations’’ on the use of letter contracts for architect-engineer (AE) services. GSAR clause 552.216–70, Economic Price Adjustment—FSS Multiple Award Schedule Contracts, is relocated to GSAR Part 538. The GSAR clause at 552.216–72, Placement of Orders, is revised to delete Alternates II, III, and IV and relocate them to GSAR Part 538, and it contains minor edits. The GSAR clause at 552.216–73, Ordering Information, contains minor edits. Discussion of Comments There were six public comments received in response to the ‘‘Advanced Notice of Proposed Rulemaking.’’ The first commenter suggested that the GSAR should include coverage on Governmentwide acquisition contracts (GWAC) and the use of GSA assisted services. The GWAC and assisted services are very closely related: GSA’s assisted services are offered through GWAC contracts. GWACs are negotiated acquisitions covered by FAR Part 15 (GSAM 515), while FAR Part 16 (GSAM Part 516) covers the authority for GWACs (i.e., IDIQ contracts). Both GSAM parts are in the rewrite effort so, to a degree, the comment is being addressed. During our rewrite process, our proposed coverage of GWACs and assisted services was determined to be satisfactory by the cognizant office within FAS. We construe the comment, however, to mean that the GSAM should devote a special section to GWACs and assisted services, such as is done in GSAM 538 which addresses the Federal Supply Schedule Program. The suggestion is not without merit: however, it is outside the scope of the current GSAM effort, which did not envision the creation of new GSAM parts. The current effort has revealed a number of issues that need to be addressed in future updates to the GSAM and we propose to revisit that comment when future revisions are considered. The second commenter suggested establishing a central location for all contract clauses GSA includes in FSS and GWAC contracts: in particular, the clauses denoted as ‘‘x-FSS clauses.’’ One of the purposes of the GSAM rewrite is to put all clauses used by GSA in the GSAM. While this goal may not be 100 percent achieved in the initial rewrite effort, at some point in time all clauses will be in one place—the GSAM. The third and fourth commenter submitted a response that said GSA PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 schedule holders are penalized because they are subject to the Economic Price Adjustment clause limiting price increase to 10 percent after a one-year waiting period. GSAR clauses 552.216– 70 and 552.216–71 establish contract coverage for economic price adjustments under Multiple Award Schedules (MAS) and Global Supply Item contracts, respectively. With respect to the MAS, GSAR clause 552.216–70, this comment will be addressed in the coverage for GSAR Part 538. GSAR clause 552.216–71 indicates that there is a 10 percent cap on such adjustments unless the Contracting Director approves a higher percentage. In addition, the percentage actually used should be based on historical trends drawn from an index such as the Producer Price Index (PPI). In these cases, the GSAR mirrors the FAR’s guidance on economic price adjustments for standard supplies (nonSchedule) as outlined in FAR clause 52.216–2, which also includes the 10 percent cap. Accordingly, the GSAR coverage (meant to be used for a subset of all supply contracts, specifically FAS Schedules) follows the FAR, and the change requested would require a change to the FAR and cannot be made independently in the GSAR. Also, the GSAR makes clear that the percentage used in Schedule contracts (whether above or below 10 percent) is to be based on established historical trends (PPI) and not on a negotiation between one agency and one contractor on each individual contract. This allows the percentage established for each contract to be based on objective data. This percentage should normally be 10 percent, unless based on a trend established by an appropriate index such as the Producer Prices and Price Index during the most recent 6–month period indicates that a different percentage is more appropriate. The fifth commenter recommended that the GSAR be revised to clarify that subcontractor labor hours under a Time and Material (T&M) contract are paid at the rates established in the prime contract or task order. Although the recommendation references ‘‘Time and Material’’ contracts, the issue deals with contract financing and should be addressed in GSAM Part 532, Contract Financing. The sixth commenter recommended that the GSAR be revised to provide that contractors may apply G&A to travel costs and other direct changes in accordance with each vendor’s approved cost accounting standards disclosure statement. This issue will be addressed in the rewrite of GSAR Part 531. E:\FR\FM\09JYP1.SGM 09JYP1 Federal Register / Vol. 73, No. 132 / Wednesday, July 9, 2008 / Proposed Rules This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under5 U.S.C. 804. B. Regulatory Flexibility Act The General Services Administration does 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 revisions are not considered substantive. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. We invite comments from small businesses and other interested parties. GSA will consider comments from small entities concerning the affected GSAR Parts 516 and 552 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, et seq. (GSAR case 2006– G504), in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the proposed changes to the GSAM do not impose 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 516 and 552 Government procurement. Dated: July 2, 2008 Al Matera, Director, Office of Acquisition Policy. Therefore, GSA proposes to amend 48 CFR parts 516 and 552 as set forth below: 1. The authority citation for 48 CFR parts 516 and 552 is revised to read as follows: Authority: 40 U.S.C. 121(c). PART 516—TYPES OF CONTRACTS jlentini on PROD1PC65 with PROPOSALS 2. Amend section 516.203–4 by— a. Removing paragraph (a), and redesignating paragraphs (b) and (c) as (a) and (b), respectively; b. Revising the newly redesignated paragraph (a); c. Removing from the newly redesignated paragraph (b)(1) ‘‘you VerDate Aug<31>2005 20:05 Jul 08, 2008 Jkt 214001 decide’’ and adding ‘‘the contracting officer decides’’ in its place; and d. Removing the period from the end of the newly redesignated paragraphs (b)(1)(i) and (b)(1)(ii) and adding a semicolon in its place; and removing the period from the newly redesignated paragraph (b)(1)(iii) and adding ‘‘; and ’’in its place. The revised text reads as follows: 516.203–4 Contract clauses. 516.506 Solicitation provisions and contract clauses. * * * * * (b) In solicitations and contracts for GSA awarded IDIQ contracts, insert the clause 552.216–XX, Task-Order and Delivery-Order Ombudsman. 4. Amend section 516.603–3 by— a. Revising the section heading; b. Revising paragraph (a); c. Removing from the introductory text of paragraph (b) ‘‘You’’ and adding ‘‘The contracting officer’’, in its place, and revising paragraph (b)(1); and d. Removing from paragraph (c) ‘‘you must issue’’ and adding ‘‘the contracting officer issues,’’ in its place. The revised text reads as follows: 516.603–70 Limitations on the use of letter contracts for architect-engineer (A-E) services. (a) Requirement for a price proposal. The proposed A-E must provide a price proposal for the non-design effort before the award of a letter contract. (b) * * * (1) The scope. If the scope includes the design effort, the contracting officer should only authorize the A-E to perform those services that are independent of the design effort (for example, feasibility studies, existing facility surveys or site investigation, Frm 00008 Fmt 4702 Sfmt 4702 etc.). Do not authorize the A-E to begin the design effort before the letter contract is definitized. * * * * * PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 552.216–70 [Removed] 5. Remove section 552.216–70. (a) Special Order Program Contracts. In multiyear solicitations and contracts, after making the determination required by FAR 16.203–3, use 552.216–71, Economic Price Adjustment-Stock and Special Order Program Contracts, or a clause prepared as authorized in paragraph (a)(3) of this subsection. * * * * * 3. Amend section 516.506 by— a. Removing from paragraph (a), ‘‘FSS’’ each time it appears and adding ‘‘FAS’’, in its place; and b. Removing paragraphs (b), (c), (d), and (e) and adding new paragraph (b), to read as follows: PO 00000 39277 552.216–71 [Amended] 6. Amend section 552.216–71 by removing from theintroductory text of the clause ‘‘516.203–4(b)’’ and adding ‘‘516.203–4(a)’’ in its place. 7. Amend section 552.216–72 by— a. Removing from paragraph (c) ‘‘GSA’s Federal Supply Service (FSS)’’ and adding ‘‘General Services Administration’s Federal Acquisition Service (FAS)’’, in its place; and removing from the second sentence ‘‘FSS’’ and adding ‘‘FAS’’ in its place; b. Removing from paragraph (a) of Alternate I ‘‘Federal Supply Service (FSS)’’ and adding ‘‘Federal Acquisition Service (FAS)’’ in its place; c. Removing from paragraphs (c) and (d) of Alternate I ‘‘FSS’’ and adding ‘‘FAS’’ in its place, respectively; and d. Removing Alternates II, III, and IV. 552.216–73 [Amended] 8. Amend section 552.216–73 in paragraph (a) by removing ‘‘Federal Supply Service (FSS)’’ and adding ‘‘Federal Acquisition Service (FAS)’’ in its place. 552.216–XX [Added] 9. Add section 552.216–XX to read as follows: 552.216–XX Task-Order and DeliveryOrder Ombudsman. As prescribed in 516.506, insert the following clause: TASK-ORDER AND DELIVERY-ORDER OMBUDSMAN (DATE) The GSA Ombudsman will exercise jurisdiction on any matters pertaining to ID/ IQ contracts awarded by GSA. The ombudsman will review complaints from contractors and ensure that they are afforded a fair opportunity to be considered for award, consistent with the procedures in the contract. (End of clause) [FR Doc. E8–15587 Filed 7–8–08; 8:45 am] BILLING CODE 6820–61–S E:\FR\FM\09JYP1.SGM 09JYP1

Agencies

[Federal Register Volume 73, Number 132 (Wednesday, July 9, 2008)]
[Proposed Rules]
[Pages 39275-39277]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15587]


=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

48 CFR Parts 516 and 552

[GSAR Case 2006-G504; Docket 2008-0007; Sequence 7]
RIN 3090-AI58


General Services Acquisition Regulation; GSAR Case 2006-G504; 
Rewrite of GSAR Part 516; Types of Contracts

AGENCY: Office of the Chief Acquisition Officer, General Services 
Administration (GSA).

ACTION: Proposed rule.

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

SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Acquisition Regulation (GSAR) to revise 
language pertaining to requirements for types of contracts.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before September 8, 2008 to be considered 
in the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2006-G504 by any of 
the following methods:
     Regulations.gov: https://www.regulations.gov.Submit 
comments via the Federal eRulemaking portal by inputting ``GSAR Case 
2006-G504'' under the heading ``Comment or Submission.'' Select the 
link ``Send a Comment or Submission '' that corresponds with GSAR Case 
2006-G504. Follow the instructions provided to complete the ``Public 
Comment and Submission Form.'' Please include your name, company name 
(if any), and ``GSAR Case 2006-G504'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat Division (VPR), 1800 F Street, NW, Room 4041, ATTN: 
Laurieann Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2006-
G504 in all correspondence related to this case. All comments received 
will be posted without change to https://www.regulations.gov, including 
any personal and/or business confidential information provided.

[[Page 39276]]


FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Cecelia Davis at (202) 219-0202, or by e-mail at 
Cecelia.Davis@gsa.gov. For information pertaining to the status or 
publication schedules, contact the Regulatory Secretariat (VPR), Room 
4035, GS Building, Washington, DC 20405, (202) 501-4755. Please cite 
GSAR Case 2006-G504.

SUPPLEMENTARY INFORMATION:

A. Background

    The General Services Administration (GSA) is amending the General 
Services Administration Acquisition Regulation (GSAR) to revise the 
prescriptions for clauses included in GSAR 516.203-4, Contract clauses, 
and GSAR 516.506, Solicitation provisions and contract clauses, and to 
make minor changes to GSAR 516.603-3, Limitations. The associated 
clauses located in GSAR 552.216 are amended to relocate the clause at 
552.216-70, Economic Price Adjustment--FSS Multiple Award Schedule 
Contracts, to GSAR 552.238, to retain the clause at 552.216-71, 
Economic Price Adjustment-Stock and Special Order Program Contracts, to 
revise GSAR clause 552.216-72, Placement of Orders, to make minor edits 
to GSAR clause 552.216-73, Ordering Information, and to include new 
GSAR clause 552.216-XX, Task-Order and Delivery-Order Ombudsman.
    This proposed rule is a result of the General Services 
Administration Acquisition Manual (GSAM) Rewrite initiative. The 
initiative was undertaken by GSA to revise the GSAM to maintain 
consistency with the FAR and implement streamlined and innovative 
acquisition procedures that contractors, offerors, and GSA contracting 
personnel can utilize when entering into and administering contractual 
relationships. The GSAM incorporates the General Services 
Administration Acquisition Regulation (GSAR) as well as internal agency 
acquisition policy.
    GSA will rewrite each part of the GSAR and GSAM, and as each GSAR 
part is rewritten, will publish it in the Federal Register.
    This proposed rule revises GSAR 516.203-4, Contract clauses, 
516.506, Solicitation provisions and contract clauses, and associated 
clauses in GSAR 552.516. The information in GSAR 516.203-4(a) is 
relocated to GSAR Part 538 and paragraph (b) is renumbered accordingly 
and contains minor edits. GSAR 516.506 is revised to delete paragraphs 
(b), (c), (d), and (e) from this part and relocate them to GSAR Part 
538. New GSAR clause, 552.216-XX, Task-Order and Delivery-Order 
Ombudsman, is added to describe the GSA Ombudsman's responsibilities. 
GSAR 516.603-3, Limitations, is renumbered as 516.603-70 as a 
supplement to the FAR and the title is changed to ``Limitations'' on 
the use of letter contracts for architect-engineer (A-E) services. GSAR 
clause 552.216-70, Economic Price Adjustment--FSS Multiple Award 
Schedule Contracts, is relocated to GSAR Part 538. The GSAR clause at 
552.216-72, Placement of Orders, is revised to delete Alternates II, 
III, and IV and relocate them to GSAR Part 538, and it contains minor 
edits. The GSAR clause at 552.216-73, Ordering Information, contains 
minor edits.

Discussion of Comments

    There were six public comments received in response to the 
``Advanced Notice of Proposed Rulemaking.'' The first commenter 
suggested that the GSAR should include coverage on Governmentwide 
acquisition contracts (GWAC) and the use of GSA assisted services. The 
GWAC and assisted services are very closely related: GSA's assisted 
services are offered through GWAC contracts. GWACs are negotiated 
acquisitions covered by FAR Part 15 (GSAM 515), while FAR Part 16 (GSAM 
Part 516) covers the authority for GWACs (i.e., IDIQ contracts). Both 
GSAM parts are in the rewrite effort so, to a degree, the comment is 
being addressed. During our rewrite process, our proposed coverage of 
GWACs and assisted services was determined to be satisfactory by the 
cognizant office within FAS. We construe the comment, however, to mean 
that the GSAM should devote a special section to GWACs and assisted 
services, such as is done in GSAM 538 which addresses the Federal 
Supply Schedule Program. The suggestion is not without merit: however, 
it is outside the scope of the current GSAM effort, which did not 
envision the creation of new GSAM parts. The current effort has 
revealed a number of issues that need to be addressed in future updates 
to the GSAM and we propose to revisit that comment when future 
revisions are considered. The second commenter suggested establishing a 
central location for all contract clauses GSA includes in FSS and GWAC 
contracts: in particular, the clauses denoted as ``x-FSS clauses.'' One 
of the purposes of the GSAM rewrite is to put all clauses used by GSA 
in the GSAM. While this goal may not be 100 percent achieved in the 
initial rewrite effort, at some point in time all clauses will be in 
one place--the GSAM.
    The third and fourth commenter submitted a response that said GSA 
schedule holders are penalized because they are subject to the Economic 
Price Adjustment clause limiting price increase to 10 percent after a 
one-year waiting period. GSAR clauses 552.216-70 and 552.216-71 
establish contract coverage for economic price adjustments under 
Multiple Award Schedules (MAS) and Global Supply Item contracts, 
respectively. With respect to the MAS, GSAR clause 552.216-70, this 
comment will be addressed in the coverage for GSAR Part 538. GSAR 
clause 552.216-71 indicates that there is a 10 percent cap on such 
adjustments unless the Contracting Director approves a higher 
percentage. In addition, the percentage actually used should be based 
on historical trends drawn from an index such as the Producer Price 
Index (PPI). In these cases, the GSAR mirrors the FAR's guidance on 
economic price adjustments for standard supplies (non-Schedule) as 
outlined in FAR clause 52.216-2, which also includes the 10 percent 
cap. Accordingly, the GSAR coverage (meant to be used for a subset of 
all supply contracts, specifically FAS Schedules) follows the FAR, and 
the change requested would require a change to the FAR and cannot be 
made independently in the GSAR. Also, the GSAR makes clear that the 
percentage used in Schedule contracts (whether above or below 10 
percent) is to be based on established historical trends (PPI) and not 
on a negotiation between one agency and one contractor on each 
individual contract. This allows the percentage established for each 
contract to be based on objective data. This percentage should normally 
be 10 percent, unless based on a trend established by an appropriate 
index such as the Producer Prices and Price Index during the most 
recent 6-month period indicates that a different percentage is more 
appropriate. The fifth commenter recommended that the GSAR be revised 
to clarify that subcontractor labor hours under a Time and Material 
(T&M) contract are paid at the rates established in the prime contract 
or task order. Although the recommendation references ``Time and 
Material'' contracts, the issue deals with contract financing and 
should be addressed in GSAM Part 532, Contract Financing. The sixth 
commenter recommended that the GSAR be revised to provide that 
contractors may apply G&A to travel costs and other direct changes in 
accordance with each vendor's approved cost accounting standards 
disclosure statement. This issue will be addressed in the rewrite of 
GSAR Part 531.

[[Page 39277]]

    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under5 U.S.C. 804.

B. Regulatory Flexibility Act

    The General Services Administration does 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 revisions are not considered substantive. 
An Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. We invite comments from small businesses and other 
interested parties. GSA will consider comments from small entities 
concerning the affected GSAR Parts 516 and 552 in accordance with 5 
U.S.C. 610. Interested parties must submit such comments separately and 
should cite 5 U.S.C. 601, et seq. (GSAR case 2006-G504), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the GSAM do not impose 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 516 and 552

    Government procurement.

    Dated: July 2, 2008
Al Matera,
Director, Office of Acquisition Policy.

    Therefore, GSA proposes to amend 48 CFR parts 516 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 516 and 552 is revised 
to read as follows:

    Authority: 40 U.S.C. 121(c).

PART 516--TYPES OF CONTRACTS

    2. Amend section 516.203-4 by--
    a. Removing paragraph (a), and redesignating paragraphs (b) and (c) 
as (a) and (b), respectively;
    b. Revising the newly redesignated paragraph (a);
    c. Removing from the newly redesignated paragraph (b)(1) ``you 
decide'' and adding ``the contracting officer decides'' in its place; 
and
    d. Removing the period from the end of the newly redesignated 
paragraphs (b)(1)(i) and (b)(1)(ii) and adding a semicolon in its 
place; and removing the period from the newly redesignated paragraph 
(b)(1)(iii) and adding ``; and ''in its place.
    The revised text reads as follows:


516.203-4  Contract clauses.

    (a) Special Order Program Contracts. In multiyear solicitations and 
contracts, after making the determination required by FAR 16.203-3, use 
552.216-71, Economic Price Adjustment-Stock and Special Order Program 
Contracts, or a clause prepared as authorized in paragraph (a)(3) of 
this subsection.
* * * * *
    3. Amend section 516.506 by--
    a. Removing from paragraph (a), ``FSS'' each time it appears and 
adding ``FAS'', in its place; and
    b. Removing paragraphs (b), (c), (d), and (e) and adding new 
paragraph (b), to read as follows:


516.506  Solicitation provisions and contract clauses.

* * * * *
    (b) In solicitations and contracts for GSA awarded IDIQ contracts, 
insert the clause 552.216-XX, Task-Order and Delivery-Order Ombudsman.
    4. Amend section 516.603-3 by--
    a. Revising the section heading;
    b. Revising paragraph (a);
    c. Removing from the introductory text of paragraph (b) ``You'' and 
adding ``The contracting officer'', in its place, and revising 
paragraph (b)(1); and
    d. Removing from paragraph (c) ``you must issue'' and adding ``the 
contracting officer issues,'' in its place.
    The revised text reads as follows:


516.603-70  Limitations on the use of letter contracts for architect-
engineer (A-E) services.

    (a) Requirement for a price proposal. The proposed A-E must provide 
a price proposal for the non-design effort before the award of a letter 
contract.
    (b) * * *
    (1) The scope. If the scope includes the design effort, the 
contracting officer should only authorize the A-E to perform those 
services that are independent of the design effort (for example, 
feasibility studies, existing facility surveys or site investigation, 
etc.). Do not authorize the A-E to begin the design effort before the 
letter contract is definitized.
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.216-70  [Removed]

    5. Remove section 552.216-70.


552.216-71  [Amended]

    6. Amend section 552.216-71 by removing from theintroductory text 
of the clause ``516.203-4(b)'' and adding ``516.203-4(a)'' in its 
place.
    7. Amend section 552.216-72 by--
    a. Removing from paragraph (c) ``GSA's Federal Supply Service 
(FSS)'' and adding ``General Services Administration's Federal 
Acquisition Service (FAS)'', in its place; and removing from the second 
sentence ``FSS'' and adding ``FAS'' in its place;
    b. Removing from paragraph (a) of Alternate I ``Federal Supply 
Service (FSS)'' and adding ``Federal Acquisition Service (FAS)'' in its 
place;
    c. Removing from paragraphs (c) and (d) of Alternate I ``FSS'' and 
adding ``FAS'' in its place, respectively; and
    d. Removing Alternates II, III, and IV.


552.216-73  [Amended]

    8. Amend section 552.216-73 in paragraph (a) by removing ``Federal 
Supply Service (FSS)'' and adding ``Federal Acquisition Service (FAS)'' 
in its place.


552.216-XX  [Added]

    9. Add section 552.216-XX to read as follows:


552.216-XX  Task-Order and Delivery-Order Ombudsman.

    As prescribed in 516.506, insert the following clause:
    TASK-ORDER AND DELIVERY-ORDER OMBUDSMAN (DATE)
    The GSA Ombudsman will exercise jurisdiction on any matters 
pertaining to ID/IQ contracts awarded by GSA. The ombudsman will 
review complaints from contractors and ensure that they are afforded 
a fair opportunity to be considered for award, consistent with the 
procedures in the contract.
    (End of clause)
[FR Doc. E8-15587 Filed 7-8-08; 8:45 am]
BILLING CODE 6820-61-S
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