General Services Administration Acquisition Regulation (GSAR); Industrial Funding Fee (IFF) and Sales Reporting, 76446-76448 [2012-31057]

Agencies

• General Services Administration

[Federal Register Volume 77, Number 249 (Friday, December 28, 2012)]
[Proposed Rules]
[Pages 76446-76448]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31057]


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GENERAL SERVICES ADMINISTRATION

48 CFR Part 552

[GSAR Case 2012-G503; Docket 2012-0018; Sequence 1]
RIN 3090-AJ31


General Services Administration Acquisition Regulation (GSAR); 
Industrial Funding Fee (IFF) and Sales Reporting

AGENCY: Office of Acquisition Policy, General Services Administration.

ACTION: Proposed rule.

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SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Administration Acquisition Regulation (GSAR) 
to revise the GSAR clause and to address the use of the Industrial 
Funding Fee (IFF) under the Multiple Award Schedules (MAS) Program. The 
proposed revisions will reflect the current use of the IFF to include 
the ability to offset losses in other Federal Acquisition Service (FAS) 
programs and fund initiatives that benefit other FAS programs. This 
change will benefit GSA and the MAS Program by facilitating 
transparency and open government, and more accurately define the 
current MAS Program operations while simultaneously complying with the 
recommendations of the GSA Office of Inspector General (OIG). This 
proposed rule is part of the General Services Administration 
Acquisition Manual (GSAM) rewrite Project, in which all parts of the 
regulation are being reviewed and updated to include new statutes, 
legislation, policies, and to delete outdated information and obsolete 
forms.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before February 26, 2013 to be considered 
in the formulation of the final rule.

ADDRESSES: Submit comments identified by GSAR Case 2012-G503 by any of 
the following methods:
     Regulations.gov: https://www.regulations.gov. Submit 
comments by searching for ``GSAR Case 2012-G503''. Follow the 
instructions provided to ``Submit a Comment''. Please include your 
name, company name (if any), and ``GSAR Case 2012-G503'' on your 
attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1275 First Street NE., 7th Floor, ATTN: Hada 
Flowers, Washington, DC 20417.
    Instructions: Please submit comments only and cite GSAR Case 2012-
G503 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.

FOR FURTHER INFORMATION CONTACT: Ms. Dana Munson, General Services 
Acquisition Policy Division, GSA, 202-357-9652 or email 
Dana.Munson@gsa.gov, for clarification of content. For information 
pertaining to status or publication schedules, contact

[[Page 76447]]

the Regulatory Secretariat at 202-501-4755. Please cite GSAR Case 2012-
G503.

SUPPLEMENTARY INFORMATION: 

A. Background

    GSA is proposing to amend the GSAR to update the text addressing 
GSAR Part 552, Solicitation Provisions and Contract Clauses at 552.238-
74 Industrial Funding Fee and Sales Reporting.
    Currently, the language contained in the IFF Clause, GSAR 552.238-
74, under subsection (b)(2) states ``* * * The IFF reimburses the 
Federal Supply Service for the costs of operating the Federal Supply 
Schedules Program and recoups its operating costs from ordering 
activities.'' The GSA OIG's AUDIT OF THE MULTIPLE AWARD SCHEDULE 
PROGRAM INDUSTRIAL FUNDING FEE (REPORT NUMBER A090256/Q/A/P12003), 
dated February 3, 2012 (the ``OIG Report''), recommended that GSA 
further improve transparency in the MAS Program by informing MAS 
customers that the IFF may be used to fund other programs or offset 
losses in other FAS programs. As a result of the OIG recommendation, 
GSA proposes to amend the current language at GSAR/GSAM clause 552.238-
74 Industrial Funding Fee (IFF) and Sales Reporting to include the 
expanded role of net revenue generated by IFF payments.
    In addition, the OIG Report cited the GSA Modernization Act (Pub. 
L. 109-313, 120 Stat. 1734 (2006), codified in relevant part at 40 
U.S.C. 321) as the authority under which net operating revenue 
generated by the IFF can be used for more than simple recoupment of 
costs to run the MAS Program.
    The GSA Modernization Act combined the General Supply Fund and the 
Information Technology Fund which were formerly separate, into one 
fund, the Acquisition Services Fund.
    The GSA Modernization Act, among other things, grants the GSA 
Administrator latitude in determining how to use net operating revenue 
from the MAS Program, including offsetting losses in other FAS programs 
or funding initiatives benefitting other FAS programs. Essentially, use 
of MAS program revenue may extend beyond mere MAS Program cost 
recovery. In the past, this information was not formally communicated 
to MAS Program customers. Additionally, GSA is updating all references 
to ``Federal Supply Service'' or ``FSS'' in the IFF clause to reflect 
the current name: ``Federal Acquisition Services'' or ``FAS'', as 
appropriate.
    This proposed rule complies with the recommendations of the GSA 
OIG, and facilitates transparency and open government, as well as more 
accurately reflects the current MAS Program relative to use of the IFF. 
This action is separate and apart from GSA's recent announcement that 
it will review and develop recommendations on the overall fee structure 
for the MAS Program in an effort to create savings for GSA customers.

B. 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 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 rule is not a major rule 
under 5 U.S.C. 804.

C. 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 the proposed rule clarifies GSA's use of 
the IFF under the MAS Program, consistent with the GSA Modernization 
Act and the recommendation of the GSA OIG. This rule does not require 
implementation of any changes on the part of businesses, large or small 
doing business with GSA. An Initial Regulatory Flexibility Analysis 
has, therefore, not been performed. We invite comments from small 
businesses and other interested parties on the expected impact of this 
rule on small entities. GSA will consider comments from small entities 
concerning the affected GSAR Part 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 2012-G503), in correspondence.

D. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies because 
the proposed rule contains information collection requirements relating 
to the collection of the Industrial Funding Fee. This information 
collection lapsed on March 9, 2010 and accordingly, the Regulatory 
secretariat will submit a request for approval of a reinstatement of 
the information collection requirement concerning 3090-0121, Industrial 
Funding Fee and Sales Reporting, to the Office of Management and 
Budget. The proposed rule described herein, of amending the IFF clause 
for clarification, does not affect the estimate of information 
collection burden.

Annual Reporting Burden

    Public reporting burden for this collection of information is 
estimated to average .0833 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection information.
    The annual reporting burden is estimated as follows:
    Respondents: 19,000.
    Responses per Respondent: 4.
    Total Responses: 76,000.
    Hours per Response: .0833.
    Total Burden Hours: 6,330.80.

Request for Comments Regarding Paperwork Burden

    Submit comments, including suggestions for reducing this burden, 
not later than February 26, 2013 TO: GSAR Desk Officer, OMB, Room 
10102, NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1275 
First Street NE., 7th Floor, Washington, DC 20417.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the GSAR, and will have practical utility; whether our 
estimate of the public burden of the collection of information is 
accurate and based on valid assumptions and methodology; ways to 
enhance the quality, utility and clarity of the information to be 
collected; and ways in which we can minimize the burden of the 
collection of information on those who are to respond, through the use 
of appropriate technological collection techniques or other forms of 
information technology.
    A requester may obtain a copy of the supporting statement from the 
General Services Administration, Regulatory Secretariat (MVCB), 1275 
First Street NE., 7th Floor, Washington, DC 20417. Please cite OMB 
Control Number 3090-0121, Industrial Funding Fee and Sales Reporting, 
in correspondence.

[[Page 76448]]

List of Subjects in 48 CFR Part 552

    Government procurement.

    Dated: December 20, 2012.
Joseph A. Neurauter,
Senior Procurement Executive & Deputy Chief Acquisition Officer, Office 
of Acquisition Policy, General Services Administration.
    Therefore, GSA proposes to amend 48 CFR part 552 as set forth 
below:

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR part 552 continues to read as 
follows:

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

    2. Amend section 552.238-74 by--
    a. Revising the date of the clause;
    b. Removing from paragraph (a)(2) ``FSS'' and adding ``FAS'' in its 
place;
    c. Removing from paragraph (a)(4) ``Federal Supply Service (FSS)'' 
and adding ``Federal Acquisition Service (FAS)'' in its place;
    d. Removing from paragraphs (b), and (b)(1) ``FSS'' and adding 
``FAS'' in their places, respectively;
    e. Revising paragraph (b)(2); and
    f. Removing from paragraph (c) ``FSS'' and adding ``FAS'' in its 
place..
    The revised text reads as follows:


Sec.  552.238-74  Industrial Funding Fee and Sales Reporting.

* * * * *

Industrial Funding Fee and Sales Reporting (Date)

* * * * *
    (b) * * *
    (2) The IFF represents a percentage of the total quarterly sales 
reported. This percentage is set at the discretion of GSA's FAS. 
GSA's FAS has the unilateral right to change the percentage at any 
time, but not more than once per year. FAS will provide reasonable 
notice prior to the effective date of the change. The IFF reimburses 
FAS for the costs of operating the Federal Supply Schedules Program. 
FAS recoups its operating costs from ordering activities as set 
forth in 40 U.S.C. 321: Acquisition Services Fund. Net operating 
results generated by the IFF are also applied to offset losses or 
fund initiatives benefitting other FAS programs, in accordance with 
40 U.S.C. 321. Offerors must include the IFF in their prices. The 
fee is included in the award price(s) and reflected in the total 
amount charged to ordering activities. FAS will post notice of the 
current IFF at https://72a.gsa.gov/or successor Web site as 
appropriate.
* * * * *
[FR Doc. 2012-31057 Filed 12-27-12; 8:45 am]
BILLING CODE 6820-61-P