80 FR 34126 - General Services Administration Acquisition Regulation (GSAR); Rewrite of GSAR Part 517, Special Contracting Methods

GENERAL SERVICES ADMINISTRATION

Federal Register Volume 80, Issue 114 (June 15, 2015)

Page Range		34126-34127
FR Document		2015-14198

The General Services Administration (GSA) is proposing to amend the General Services Administration Acquisition Regulation (GSAR) to revise requirements for special contracting methods and updates eliminating out of date references and reorganizes the text to align with the Federal Acquisition Regulation (FAR). This second proposed rule incorporates many of the changes of the proposed rule and makes additional modifications to the text.

Federal Register, Volume 80 Issue 114 (Monday, June 15, 2015)

[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)]
[Proposed Rules]
[Pages 34126-34127]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14198]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 517 and 552

[GSAR Case 2007-G500; Docket 2008-0007; Sequence 3]
RIN 3090-AI51


General Services Administration Acquisition Regulation (GSAR); 
Rewrite of GSAR Part 517, Special Contracting Methods

AGENCY: Office of Acquisition Policy, Office of Government-Wide Policy, 
General Services Administration (GSA).

ACTION: Proposed rule.

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

SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Administration Acquisition Regulation (GSAR) 
to revise requirements for special contracting methods and updates 
eliminating out of date references and reorganizes the text to align 
with the Federal Acquisition Regulation (FAR). This second proposed 
rule incorporates many of the changes of the proposed rule and makes 
additional modifications to the text.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before August 14, 2015 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR case 2007-G500 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``GSAR 
Case 2007-G500''. Select the link ``Comment Now'' that corresponds with 
``GSAR Case 2007-G500.'' Follow the instructions provided at the 
``Comment Now'' screen. Please include your name, company name (if 
any), and ``GSAR Case 2007-G500'' on your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2007-
G500, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification about content, 
contact Ms. Janet Fry at 703-605-3167 or [email protected]. For 
information pertaining to the status or publication schedules, contact 
the Regulatory Secretariat (MVCB), 1800 F Street NW., Washington, DC 
20405, 202-501-4755. Please cite GSAR Case 2007-G500.

SUPPLEMENTARY INFORMATION:

I. Background

    The General Services Administration (GSA) is amending the General 
Services Administration Acquisition Regulation (GSAR) to revise 
sections of GSAR part 517 that provide requirements for special 
contracting methods.
    GSA published a proposed rule in the Federal Register at 73 FR 
32274 on June 6, 2008 http://www.thefederalregister.org/fdsys/pkg/FR-2008-06-06/pdf/E8-12613.pdf as part of the General Services Administration Acquisition 
Manual (GSAM) Rewrite initiative undertaken by GSA to update the GSAM 
to maintain consistency with the Federal Acquisition Regulation (FAR). 
The GSAM incorporates the GSAR as well as internal agency acquisition 
policy. No comments were received in response to the Federal Register 
Notice for the proposed rule.
    The case is being issued as a second proposed rule due to the 
additional edits made to GSAR part 517 and the length of time since the 
proposed rule was published in 2008.

II. Discussion and Analysis

A. Summary of Significant Changes

    The second proposed rule:
     Updates the statutes cited in GSAR 517.109.
     Deletes GSAR 517.200(b), GSAR 517.202(iv), GSAR 
517.202(v), and GSAR 517.207(a) and makes conforming changes.
     Replaces the content of GSAR 517.203 with new text, cross 
referencing the requirements in FAR 22.407 when using option provisions 
that extend the term of a construction contract.
     Adds a new paragraph at GSAR 517.207(b) that reminds 
contracting officers to seek new wage determinations when exercising 
options that extend the term of the contract.
     Addresses other administrative and typographical updates.

    Note: The following proposed changes were not retained in the 
second proposed rule:
     517.202(c) was not retained as FAR 7.105 already 
requires contracting officers to address options in acquisition 
plans.
     517.203(c) was not retained as availability of funds is 
part of the FAR 17.207 determination.

B. Analysis of Public Comments

    No comments on the proposed rule were received from the public by 
the August 5, 2008 closing date.

III. 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.

IV. Regulatory Flexibility Act

    The General Services Administration does not expect this proposed 
rule to

[[Page 34127]]

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 revisions are administrative in nature. The 
changes merely update and reorganize existing GSAR coverage. Therefore, 
the agency did not perform an Initial Regulatory Flexibility Analysis 
(IRFA).
    GSA will also consider comments from small entities concerning the 
subparts affected by the rule consistent with 5 U.S.C. 610. Interested 
parties must submit such comments separately and should cite 5 U.S.C. 
601, GSAR case 2007-G500, in correspondence.

V. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply as the rule does not 
impose information collection requirements that require the approval of 
the Office of Management and Budget under 44 U.S.C. chapter 35.

List of Subjects in 48 CFR Parts 517 and 552

    Government procurement.

    Dated: June 5, 2015.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, General 
Services Administration.

    Therefore, GSA proposes to amend 48 CFR parts 517 and 552 as set 
forth below:

0
1. The authority citation for 48 CFR part 517 is revised to read as 
follows:

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

PART 517--SPECIAL CONTRACTING METHODS


517.109   [Amended]

0
2. Amend section 517.109 by removing from the introductory text ``40 
U.S.C. 490(a)(14)'' and ``40 U.S.C. 481(a)(3)'' and adding ``40 U.S.C. 
581(c)(6)'' and ``40 U.S.C. 501(b)(1)(B)'' in their places, 
respectively.
0
3. Revise section 517.200 to read as follows:


517.200  Scope of subpart.

    This subpart applies to all GSA contracts for supplies and 
services, including:
    (a) Services involving construction, alteration, or repair 
(including dredging, excavating, and painting) of buildings, bridges, 
roads, or other kinds of real property.
    (b) Architect-engineer services.
0
4. Amend section 517.202 by--
0
a. Removing from the introductory paragraph of (a)(1) ``You should use 
options'' and adding ``Options should be used'' in its place;
0
b. Removing from paragraph (a)(2)(i) ``You anticipate a'' and adding 
``There is an anticipated'' in its place;
0
c. Revising paragraph (a)(2)(ii);
0
d. Removing paragraphs (a)(2)(iv) and (a)(2)(v); and
0
e. Removing from paragraph (a)(3) ``Do not use an option'' and adding 
``An option may not be used'' in its place.
    The revision reads as follows:


517.202  Use of options.

    (a) * * *
    (2) * * *
    (ii) The use of multiyear contracting authority is inappropriate 
and the contracting officer anticipates a need for additional supplies 
or services beyond the basic contract term.
* * * * *
0
5. Revise section 517.203 to read as follows:


517.203  Solicitations.

    Construction solicitations and contracts which contain options that 
extend the term of the contract must include one of the three clauses 
described at FAR 22.407(e), (f) or (g).
0
6. Revise section 517.207 to read as follows:


517.207  Exercise of options.

    In addition to the requirements of FAR 17.207, the contracting 
officer must also:
    (a) Determine that the contractor's performance under the contract 
met or exceeded the Government's expectation for quality performance, 
unless another circumstance justifies an extended contractual 
relationship; and
    (b) Obtain a new wage determination if the Service Contract Act 
(FAR 22.1007) or the Davis-Bacon Act (FAR 22.404-12) applies.
    (c) Determine that the option price is fair and reasonable.


517.208  [Amended]

0
7. Amend section 517.208 by removing from the introductory paragraph 
(a) ``FSS's'' and adding ``FAS''' in its place.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. The authority citation for 48 CFR parts 552 continues to read as 
follows:

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

0
9. Amend section 552.217-70 by revising the date of the provision; and 
removing from paragraph (a), in the second sentence ``standard);'' and 
adding ``standard),'' in its place.
    The revision reads as follows:


552.217-70  Evaluation of options.

* * * * *

Evaluation of Options (Date)

* * * * *
[FR Doc. 2015-14198 Filed 6-12-15; 8:45 am]
BILLING CODE 6820-61-P

34126 Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Proposed Rules

Appendix C of the Report and Order. references and reorganizes the text to received in response to the Federal
Written public comments are requested align with the Federal Acquisition Register Notice for the proposed rule.
on the IRFA. These comments must be Regulation (FAR). This second proposed The case is being issued as a second
filed in accordance with the same filing rule incorporates many of the changes of proposed rule due to the additional
deadlines as comments filed in response the proposed rule and makes additional edits made to GSAR part 517 and the
to the Report and Order and Second modifications to the text. length of time since the proposed rule
Further Notice of Proposed Rulemaking DATES: Interested parties should submit was published in 2008.
as set forth above, and have a separate written comments to the Regulatory II. Discussion and Analysis
and distinct heading designating them Secretariat on or before August 14, 2015
as responses to the IRFA. The to be considered in the formulation of A. Summary of Significant Changes
Commission’s Consumer and a final rule. The second proposed rule:
Governmental Affairs Bureau, Reference ADDRESSES: Submit comments • Updates the statutes cited in GSAR
Information Center, will send a copy of identified by GSAR case 2007–G500 by 517.109.
this Report and Order and Second any of the following methods: • Deletes GSAR 517.200(b), GSAR
Further Notice of Proposed Rulemaking, • Regulations.gov: http:// 517.202(iv), GSAR 517.202(v), and
including the FRFA and IRFA, to the www.regulations.gov. Submit comments GSAR 517.207(a) and makes conforming
Chief Counsel for Advocacy of the Small via the Federal eRulemaking portal by changes.
Business Administration (SBA). searching for ‘‘GSAR Case 2007–G500’’. • Replaces the content of GSAR
Select the link ‘‘Comment Now’’ that 517.203 with new text, cross referencing
D. Initial Paperwork Reduction Act
corresponds with ‘‘GSAR Case 2007– the requirements in FAR 22.407 when
Analysis
G500.’’ Follow the instructions provided using option provisions that extend the
This Second FNPRM contains at the ‘‘Comment Now’’ screen. Please term of a construction contract.
proposed new information collection include your name, company name (if • Adds a new paragraph at GSAR
requirements. The Commission, as part any), and ‘‘GSAR Case 2007–G500’’ on 517.207(b) that reminds contracting
of its continuing effort to reduce your attached document. officers to seek new wage
paperwork burdens, invites the general • Mail: General Services determinations when exercising options
public and OMB to comment on the Administration, Regulatory Secretariat that extend the term of the contract.
information collection requirements (MVCB), ATTN: Ms. Flowers, 1800 F • Addresses other administrative and
contained in this document, as required Street NW., 2nd Floor, Washington, DC typographical updates.
by PRA. In addition, pursuant to the 20405. Note: The following proposed changes
Small Business Paperwork Relief Act of Instructions: Please submit comments were not retained in the second proposed
2002, we seek specific comment on how only and cite GSAR Case 2007–G500, in rule:
we might ‘‘further reduce the all correspondence related to this case. • 517.202(c) was not retained as FAR 7.105
information collection burden for small All comments received will be posted already requires contracting officers to
business concerns with fewer than 25 address options in acquisition plans.
without change to http:// • 517.203(c) was not retained as
employees.’’ www.regulations.gov, including any availability of funds is part of the FAR 17.207
Federal Communications Commission. personal and/or business confidential determination.
Gloria J. Miles, information provided.
Federal Register Liaison Officer. FOR FURTHER INFORMATION CONTACT: For B. Analysis of Public Comments
[FR Doc. 2015–14495 Filed 6–12–15; 8:45 am] clarification about content, contact Ms. No comments on the proposed rule
BILLING CODE 6712–01–P Janet Fry at 703–605–3167 or janet.fry@ were received from the public by the
gsa.gov. For information pertaining to August 5, 2008 closing date.
the status or publication schedules,
contact the Regulatory Secretariat III. Executive Orders 12866 and 13563
GENERAL SERVICES
ADMINISTRATION (MVCB), 1800 F Street NW., Executive Orders (E.O.s) 12866 and
Washington, DC 20405, 202–501–4755. 13563 direct agencies to assess all costs
48 CFR Parts 517 and 552 Please cite GSAR Case 2007–G500. and benefits of available regulatory
[GSAR Case 2007–G500; Docket 2008–0007; SUPPLEMENTARY INFORMATION: alternatives and, if regulation is
Sequence 3] necessary, to select regulatory
I. Background
approaches that maximize net benefits
RIN 3090–AI51 The General Services Administration (including potential economic,
(GSA) is amending the General Services environmental, public health and safety
General Services Administration Administration Acquisition Regulation effects, distributive impacts, and
Acquisition Regulation (GSAR); (GSAR) to revise sections of GSAR part equity). E.O. 13563 emphasizes the
Rewrite of GSAR Part 517, Special 517 that provide requirements for importance of quantifying both costs
Contracting Methods special contracting methods. and benefits, of reducing costs, of
AGENCY: Office of Acquisition Policy, GSA published a proposed rule in the harmonizing rules, and of promoting
Office of Government-Wide Policy, Federal Register at 73 FR 32274 on June flexibility. This is not a significant
6, 2008 http://www.gpo.gov/fdsys/pkg/ regulatory action and, therefore, was not
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS

General Services Administration (GSA).
ACTION: Proposed rule. FR-2008-06-06/pdf/E8-12613.pdf as part subject to review under section 6(b) of
of the General Services Administration E.O. 12866, Regulatory Planning and
SUMMARY: The General Services Acquisition Manual (GSAM) Rewrite Review, dated September 30, 1993. This
Administration (GSA) is proposing to initiative undertaken by GSA to update rule is not a major rule under 5 U.S.C.
amend the General Services the GSAM to maintain consistency with 804.
Administration Acquisition Regulation the Federal Acquisition Regulation
(GSAR) to revise requirements for (FAR). The GSAM incorporates the IV. Regulatory Flexibility Act
special contracting methods and GSAR as well as internal agency The General Services Administration
updates eliminating out of date acquisition policy. No comments were does not expect this proposed rule to

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Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Proposed Rules 34127

have a significant economic impact on 481(a)(3)’’ and adding ‘‘40 U.S.C. ■ 6. Revise section 517.207 to read as
a substantial number of small entities 581(c)(6)’’ and ‘‘40 U.S.C. 501(b)(1)(B)’’ follows:
within the meaning of the Regulatory in their places, respectively.
Flexibility Act, 5 U.S.C. 601, et seq., ■ 3. Revise section 517.200 to read as 517.207 Exercise of options.
because the revisions are administrative follows: In addition to the requirements of
in nature. The changes merely update FAR 17.207, the contracting officer must
517.200 Scope of subpart.
and reorganize existing GSAR coverage. also:
Therefore, the agency did not perform This subpart applies to all GSA
contracts for supplies and services, (a) Determine that the contractor’s
an Initial Regulatory Flexibility performance under the contract met or
Analysis (IRFA). including:
(a) Services involving construction, exceeded the Government’s expectation
GSA will also consider comments for quality performance, unless another
from small entities concerning the alteration, or repair (including dredging,
excavating, and painting) of buildings, circumstance justifies an extended
subparts affected by the rule consistent contractual relationship; and
bridges, roads, or other kinds of real
with 5 U.S.C. 610. Interested parties
property. (b) Obtain a new wage determination
must submit such comments separately
(b) Architect-engineer services. if the Service Contract Act (FAR
and should cite 5 U.S.C. 601, GSAR case ■ 4. Amend section 517.202 by— 22.1007) or the Davis-Bacon Act (FAR
2007–G500, in correspondence. ■ a. Removing from the introductory 22.404–12) applies.
V. Paperwork Reduction Act paragraph of (a)(1) ‘‘You should use (c) Determine that the option price is
options’’ and adding ‘‘Options should fair and reasonable.
The Paperwork Reduction Act does
be used’’ in its place;
not apply as the rule does not impose ■ b. Removing from paragraph (a)(2)(i) 517.208 [Amended]
information collection requirements that ‘‘You anticipate a’’ and adding ‘‘There is
require the approval of the Office of ■ 7. Amend section 517.208 by
an anticipated’’ in its place;
Management and Budget under 44 ■ c. Revising paragraph (a)(2)(ii);
removing from the introductory
U.S.C. chapter 35. ■ d. Removing paragraphs (a)(2)(iv) and paragraph (a) ‘‘FSS’s’’ and adding
(a)(2)(v); and ‘‘FAS’’’ in its place.
List of Subjects in 48 CFR Parts 517 and
■ e. Removing from paragraph (a)(3)
552 PART 552—SOLICITATION
‘‘Do not use an option’’ and adding ‘‘An
Government procurement. option may not be used’’ in its place. PROVISIONS AND CONTRACT
Dated: June 5, 2015. The revision reads as follows: CLAUSES
Jeffrey A. Koses, ■ 8. The authority citation for 48 CFR
517.202 Use of options.
Senior Procurement Executive, Office of parts 552 continues to read as follows:
Acquisition Policy, General Services
(a) * * *
Administration.
(2) * * * Authority: 40 U.S.C. 121(c).
(ii) The use of multiyear contracting
Therefore, GSA proposes to amend 48 authority is inappropriate and the ■ 9. Amend section 552.217–70 by
CFR parts 517 and 552 as set forth contracting officer anticipates a need for revising the date of the provision; and
below: additional supplies or services beyond removing from paragraph (a), in the
■ 1. The authority citation for 48 CFR the basic contract term. second sentence ‘‘standard);’’ and
part 517 is revised to read as follows: * * * * * adding ‘‘standard),’’ in its place.
Authority: 40 U.S.C. 121(c). ■ 5. Revise section 517.203 to read as The revision reads as follows:
follows:
PART 517—SPECIAL CONTRACTING 552.217–70 Evaluation of options.
METHODS 517.203 Solicitations. * * * * *
Construction solicitations and
517.109 [Amended] contracts which contain options that Evaluation of Options (Date)
■ 2. Amend section 517.109 by extend the term of the contract must * * * * *
removing from the introductory text ‘‘40 include one of the three clauses [FR Doc. 2015–14198 Filed 6–12–15; 8:45 am]
U.S.C. 490(a)(14)’’ and ‘‘40 U.S.C. described at FAR 22.407(e), (f) or (g). BILLING CODE 6820–61–P
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS

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Document Created: 2015-12-15 15:13:38
Document Modified: 2015-12-15 15:13:38

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Interested parties should submit written comments to the Regulatory Secretariat on or before August 14, 2015 to be considered in the formulation of a final rule.
Contact		For clarification about content, contact Ms. Janet Fry at 703-605-3167 or [email protected] For information pertaining to the status or publication schedules, contact the Regulatory Secretariat (MVCB), 1800 F Street NW., Washington, DC 20405, 202-501-4755. Please cite GSAR Case 2007-G500.
FR Citation		80 FR 34126
RIN Number		3090-AI51
CFR Citation		48 CFR 517 48 CFR 552