81 FR 36421 - General Services Administration Acquisition Regulation (GSAR); Rewrite of GSAR Part 517, Special Contracting Methods

GENERAL SERVICES ADMINISTRATION

Federal Register Volume 81, Issue 108 (June 6, 2016)

Page Range		36421-36423
FR Document		2016-13113

The General Services Administration (GSA) is issuing a final rule, with editorial revisions to the second proposed rule, amending the General Services Administration Acquisition Regulation (GSAR) to update requirements for special contracting methods by eliminating out of date references and reorganizing the text to align with the Federal Acquisition Regulation (FAR).

Federal Register, Volume 81 Issue 108 (Monday, June 6, 2016)

[Federal Register Volume 81, Number 108 (Monday, June 6, 2016)]
[Rules and Regulations]
[Pages 36421-36423]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13113]



[[Page 36421]]

Vol. 81

Monday,

No. 108

June 6, 2016

Part III





General Services Administration





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48 CFR Part 501, 511, 515, et al.





General Services Administration Acquisition Regulations; Final Rules

Federal Register / Vol. 81 , No. 108 / Monday, June 6, 2016 / Rules 
and Regulations

[[Page 36422]]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 517 and 552

[GSAR Change 71; GSAR Case 2007-G500; Docket No. 2008-0007; Sequence 
No. 3]
RIN 3090-AI51


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

AGENCIES:  Office of Government-wide Policy, Office of Acquisition 
Policy, General Services Administration (GSA).

ACTION: Final rule.

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SUMMARY: The General Services Administration (GSA) is issuing a final 
rule, with editorial revisions to the second proposed rule, amending 
the General Services Administration Acquisition Regulation (GSAR) to 
update requirements for special contracting methods by eliminating out 
of date references and reorganizing the text to align with the Federal 
Acquisition Regulation (FAR).

DATES:  Effective: July 6, 2016.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Janet Fry, General Services Acquisition Policy Division, GSA, by 
phone at 703-605-3167 or by email at [email protected]. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 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 update 
outdated statutes and remove unnecessary or duplicative language from 
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 General Services Administration Acquisition 
Regulation (GSAR) as well as internal agency acquisition policy. No 
comments were received in response to the Federal Register Notice for 
the proposed rule.
    GSA published a second proposed rule in the Federal Register at 80 
FR 34126 on June 15, 2015 http://www.thefederalregister.org/fdsys/pkg/FR-2015-06-15/pdf/2015-14198.pdf due to the additional edits made to GSAR part 517 
and the length of time since the proposed rule was published in 2008. 
No comments were received in response to the Federal Register Notice 
for the second proposed rule.

II. Discussion and Analysis

    To keep the GSAR current, GSA has updated statutes, removed 
unnecessary or duplicative language, aligned part 517 with the FAR and 
made editorial revisions as described below.

A. Summary of Significant Changes

    The final rule:
     Replaces ``multiyear'' with ``multi-year'' through the 
517.1 subpart.
     Updates the statutes cited in GSAR 517.109.
     Deletes GSAR 517.200(b), GSAR 517.202(a)(2)(iv), GSAR 
517.202(a)(2)(v) and GSAR 517.207(a), and makes conforming changes.
     Removes and reserves section 517.203 because the 
introduction text and paragraphs are duplicative of FAR 17.207 and GSAR 
517.207.
     Replaces the content of GSAR 517.207(b) with new text, 
clarifying the need for the Contracting Officer to document the 
determination.
     Updates the program reference in GSAR 517.208(a).
     Addresses other administrative and typographical updates.

    Note:  The following changes proposed in the second proposed 
rule were not retained in the final rule:
     The proposed new text in GSAR 517.203 cross referencing 
the requirements in FAR 22.407 when using option provisions was not 
retained in the final rule as the FAR adequately addresses the 
inclusion of option clauses.
     The proposed new text in GSAR 517.207 reminding 
Contracting Officers to seek new wage determinations when exercising 
options was not retained in the final rule since the requirement is 
adequately addressed in FAR 22.1007 for Service Contract Labor 
Standard and in FAR 22.404-12 for Wage Rate Requirements 
(Construction).

B. Analysis of Public Comments

    No comments on the second proposed rule were received from the 
public by the August 14, 2015 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 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 revisions are administrative in 
nature. The changes merely update and reorganize existing GSAR 
coverage.

V. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 517 and 552

    Government procurement.

    Dated: May 27, 2016.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of 
Government-wide Policy.
    Therefore, GSA amends 48 CFR parts 517 and 552 as set forth below:

0
1. The authority citation for 48 CFR parts 517 and 552 continues to 
read as follows:

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

PART 517--SPECIAL CONTRACTING METHODS

Subpart 517.1--Multi-year Contracting

0
2. Revise the heading of subpart 517.1 to read as set forth above.


517.109  [Amended]

0
3. Amend section 517.109 by removing from the introductory text 
``multiyear'', ``40 U.S.C. 490(a)(14)'', and ``40 U.S.C. 481(a)(3)'' 
and adding ``multi-year'', ``40 U.S.C. 581(c)(6)'', and ``40 U.S.C. 
501(b)(1)(B)'' in their places, respectively.

0
4. Revise section 517.200 to read as follows:

[[Page 36423]]

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
5. Amend section 517.202 by--
0
a. Removing from the introductory text of paragraph (a)(1) ``You should 
use options'' and adding ``Options may 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 shall not be used'' in its place.
    The revision reads as follows:


517.202  Use of options.

    (a) * * *
    (2) * * *
    (ii) When there is both a need for additional supplies or services 
beyond the basic contract period and the use of multi-year contracting 
authority is inappropriate.
* * * * *


517.203  [Removed and Reserved]

0
6. Remove and reserve section 517.203.

0
7. 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) Document the contract file with the rationale for an extended 
contractual relationship if the contractor's performance rating under 
the contract is less than satisfactory.
    (b) Determine that the option price is fair and reasonable.


517.208  [Amended]

0
8. Amend section 517.208 by removing from paragraph (a) ``FSS's Stock 
or'' and adding ``the Federal Acquisition Service's'' in its place.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
9. The authority citation for 48 CFR part 552 continues to read as 
follows:

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


0
10. 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  Evaluations of options.

* * * * *

EVALUATION OF OPTIONS (JUL 2016)

* * * * *

[FR Doc. 2016-13113 Filed 6-3-16; 8:45 am]
 BILLING CODE 6820-61-P

36422 Federal Register / Vol. 81, No. 108 / Monday, June 6, 2016 / Rules and Regulations

GENERAL SERVICES 34126 on June 15, 2015 http:// (including potential economic,
ADMINISTRATION www.gpo.gov/fdsys/pkg/FR-2015-06-15/ environmental, public health and safety
pdf/2015-14198.pdf due to the effects, distributive impacts, and
48 CFR Parts 517 and 552 additional edits made to GSAR part 517 equity). E.O. 13563 emphasizes the
[GSAR Change 71; GSAR Case 2007–G500; and the length of time since the importance of quantifying both costs
Docket No. 2008–0007; Sequence No. 3] proposed rule was published in 2008. and benefits, of reducing costs, of
No comments were received in response harmonizing rules, and of promoting
RIN 3090–AI51 to the Federal Register Notice for the flexibility. This is not a significant
second proposed rule. regulatory action and, therefore, was not
General Services Administration
subject to review under Section 6(b) of
Acquisition Regulation (GSAR); II. Discussion and Analysis
E.O. 12866, Regulatory Planning and
Rewrite of GSAR Part 517, Special To keep the GSAR current, GSA has Review, dated September 30, 1993. This
Contracting Methods updated statutes, removed unnecessary rule is not a major rule under 5 U.S.C.
AGENCIES: Office of Government-wide or duplicative language, aligned part 804.
Policy, Office of Acquisition Policy, 517 with the FAR and made editorial
revisions as described below. IV. Regulatory Flexibility Act
General Services Administration (GSA).
ACTION: Final rule. A. Summary of Significant Changes The General Services Administration
certifies that this final rule will not have
SUMMARY: The General Services The final rule: a significant economic impact on a
Administration (GSA) is issuing a final • Replaces ‘‘multiyear’’ with ‘‘multi- substantial number of small entities
rule, with editorial revisions to the year’’ through the 517.1 subpart. within the meaning of the Regulatory
second proposed rule, amending the • Updates the statutes cited in GSAR Flexibility Act, 5 U.S.C. 601, et seq.,
General Services Administration 517.109. because the revisions are administrative
Acquisition Regulation (GSAR) to • Deletes GSAR 517.200(b), GSAR in nature. The changes merely update
update requirements for special 517.202(a)(2)(iv), GSAR 517.202(a)(2)(v) and reorganize existing GSAR coverage.
contracting methods by eliminating out and GSAR 517.207(a), and makes
of date references and reorganizing the conforming changes. V. Paperwork Reduction Act
text to align with the Federal • Removes and reserves section
The final rule does not contain any
Acquisition Regulation (FAR). 517.203 because the introduction text
information collection requirements that
and paragraphs are duplicative of FAR
DATES: Effective: July 6, 2016. require approval of the Office of
17.207 and GSAR 517.207.
FOR FURTHER INFORMATION CONTACT: For Management and Budget under the
• Replaces the content of GSAR
clarification of content, contact Ms. Paperwork Reduction Act (44 U.S.C.
517.207(b) with new text, clarifying the
Janet Fry, General Services Acquisition chapter 35).
need for the Contracting Officer to
Policy Division, GSA, by phone at 703– document the determination. List of Subjects in 48 CFR Parts 517 and
605–3167 or by email at janet.fry@ • Updates the program reference in 552
gsa.gov. For information pertaining to GSAR 517.208(a).
status or publication schedules, contact • Addresses other administrative and Government procurement.
the Regulatory Secretariat at 202–501– typographical updates. Dated: May 27, 2016.
4755. Please cite GSAR case 2007–G500. Jeffrey A. Koses,
Note: The following changes proposed in
SUPPLEMENTARY INFORMATION: the second proposed rule were not retained Senior Procurement Executive, Office of
in the final rule: Acquisition Policy, Office of Government-
I. Background
• The proposed new text in GSAR 517.203 wide Policy.
The General Services Administration cross referencing the requirements in FAR Therefore, GSA amends 48 CFR parts
(GSA) is amending the General Services 22.407 when using option provisions was not 517 and 552 as set forth below:
Administration Acquisition Regulation retained in the final rule as the FAR
(GSAR) to update outdated statutes and adequately addresses the inclusion of option ■ 1. The authority citation for 48 CFR
remove unnecessary or duplicative clauses. parts 517 and 552 continues to read as
language from sections of GSAR part • The proposed new text in GSAR 517.207 follows:
reminding Contracting Officers to seek new
517 that provide requirements for wage determinations when exercising
Authority: 40 U.S.C. 121(c).
special contracting methods. options was not retained in the final rule
GSA published a proposed rule in the since the requirement is adequately
PART 517—SPECIAL CONTRACTING
Federal Register at 73 FR 32274 on June addressed in FAR 22.1007 for Service METHODS
6, 2008 http://www.gpo.gov/fdsys/pkg/ Contract Labor Standard and in FAR 22.404–
FR-2008-06-06/pdf/E8-12613.pdf as part 12 for Wage Rate Requirements Subpart 517.1—Multi-year Contracting
of the General Services Administration (Construction).
■ 2. Revise the heading of subpart 517.1
Acquisition Manual (GSAM) Rewrite
B. Analysis of Public Comments to read as set forth above.
initiative undertaken by GSA to update
the GSAM to maintain consistency with No comments on the second proposed 517.109 [Amended]
the Federal Acquisition Regulation rule were received from the public by
(FAR). The GSAM incorporates the the August 14, 2015 closing date. ■ 3. Amend section 517.109 by
General Services Administration removing from the introductory text
sradovich on DSK3TPTVN1PROD with RULES3

Acquisition Regulation (GSAR) as well III. Executive Orders 12866 and 13563 ‘‘multiyear’’, ‘‘40 U.S.C. 490(a)(14)’’, and
as internal agency acquisition policy. Executive Orders (E.O.s) 12866 and ‘‘40 U.S.C. 481(a)(3)’’ and adding
No comments were received in response 13563 direct agencies to assess all costs ‘‘multi-year’’, ‘‘40 U.S.C. 581(c)(6)’’, and
to the Federal Register Notice for the and benefits of available regulatory ‘‘40 U.S.C. 501(b)(1)(B)’’ in their places,
proposed rule. alternatives and, if regulation is respectively.
GSA published a second proposed necessary, to select regulatory ■ 4. Revise section 517.200 to read as
rule in the Federal Register at 80 FR approaches that maximize net benefits follows:

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Document Created: 2016-06-04 00:17:01
Document Modified: 2016-06-04 00:17:01

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		Rules and Regulations
Action		Final rule.
Dates		Effective: July 6, 2016.
Contact		For clarification of content, contact Ms. Janet Fry, General Services Acquisition Policy Division, GSA, by phone at 703-605-3167 or by email at [email protected] For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite GSAR case 2007-G500.
FR Citation		81 FR 36421
RIN Number		3090-AI51
CFR Citation		48 CFR 517 48 CFR 552