83 FR 27989 - Request for Information From Suppliers Selling on Commercial E-Commerce Portals

GENERAL SERVICES ADMINISTRATION

Federal Register Volume 83, Issue 116 (June 15, 2018)

The General Services Administration (GSA) is soliciting information from the suppliers selling product through commercial e- Commerce Portals in order to complete Phase II of the requirements enacted in Section 846 of the National Defense Authorization Act (NDAA) for Fiscal Year 2018, Procurement through Commercial e-Commerce Portals. Note: A separate RFI is posted for those companies who are providers of commercial e-commerce platforms. Throughout the design of this program, GSA and the Office of Management and Budget (OMB) have emphasized open and ongoing engagement. The questions in the RFI are intended to continue the dialogue and to allow GSA and OMB both to draft the Phase II report (due to Congress in March 2019) and to move towards phased implementation later in 2019.

[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Notices]
[Pages 27989-27991]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12893]


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GENERAL SERVICES ADMINISTRATION

[Notice-Qp-2018-02; Docket No. 2018-0002; Sequence No. 11]


Request for Information From Suppliers Selling on Commercial E-
Commerce Portals

AGENCY: Office of Enterprise Strategy Management, General Services 
Administration (GSA).

ACTION: Request for information.

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SUMMARY: The General Services Administration (GSA) is soliciting 
information from the suppliers selling product through commercial e-
Commerce Portals in order to complete Phase II of the requirements 
enacted in Section 846 of the National Defense Authorization Act (NDAA) 
for Fiscal Year 2018, Procurement through Commercial e-Commerce 
Portals. Note: A separate RFI is posted for those companies who are 
providers of commercial e-commerce platforms. Throughout the design of 
this program, GSA and the Office of Management and Budget (OMB) have 
emphasized open and ongoing engagement. The questions in the RFI are 
intended to continue the dialogue and to allow GSA and OMB both to 
draft the Phase II report (due to Congress in March 2019) and to move 
towards phased implementation later in 2019.

DATES: Interested parties may submit written comments to 
www.regulations.gov by July 20, 2018. GSA is also hosting its second 
modified town-hall style public meeting. This meeting is in furtherance 
of Phase II on June 21, 2018, at 8:30 a.m., Eastern Standard Time 
(EST). Further Information for the public meeting may be found on the 
Commercial Platform Interact group page on https://interact.gsa.gov/group/commercial-platform-initiative and in the Federal Register (83 FR 
25004), published on May 31, 2018.

ADDRESSES: Submit comments identified by ``Request for information from 
Suppliers Selling on Commercial e-Commerce Portals'', by any of the 
following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments by searching for ``Request for information from Suppliers 
Selling on Commercial e-Commerce Portals''. Select the link ``Comment 
Now'' and follow the instructions provided at the ``You are commenting 
on'' screen. Please include your name, company name (if any), and 
``Request for information from Suppliers Selling on

[[Page 27990]]

Commercial e-Commerce Portals'', on your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), 1800 F Street NW, 2nd Floor, ATTN: Ms. 
Mandell, Washington, DC 20405-0001.
    Instructions: Please submit comments only and cite ``Request for 
information from Suppliers Selling on Commercial e-Commerce Portals'' 
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: Jasmine Schaaphok at 
[email protected], or 571-330-3941, for clarification of 
content, public meeting information, and submission of comment. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at 202-501-4755. Please cite ``Request for 
information from Suppliers Selling on Commercial e-Commerce Portals.''

SUPPLEMENTARY INFORMATION: 

I. Background

    The General Services Administration's (GSA) mission is to deliver 
value and savings in real estate, acquisition, technology, and other 
mission-support services across Government. For decades, GSA has 
provided access to commercial products through a number of channels 
including GSA Advantage!, GSA eBuy, GSA Global Supply, and the Federal 
Supply Schedules.
    GSA has long been focused on improving the acquisition of 
commercial items. Throughout its history, GSA has sought to leverage 
the best available technology to help agencies shorten the time to 
delivery, reduce administrative cost, make compliance easier, be a 
strategic thought leader and supplier of choice across the Federal 
Government, and be a good partner to industry. Today, the best 
available technology includes commercial e-commerce portals.
    The National Defense Authorization Act (NDAA) for Fiscal Year 2018, 
Section 846 ``Procurement Through Commercial e-Commerce Portals'', 
directs the Administrator of the GSA to establish a program to procure 
commercial products through commercial e-commerce portals. Section 846 
language can be found at the following link--https://interact.gsa.gov/group/commercial-platform-initiative. Section 846 paragraph (c) 
instructs the ``Director of the Office of Management and Budget, in 
consultation with the GSA Administrator and the heads of other relevant 
departments and agencies,'' to carry out three implementation Phases: 
1. Implementation Plan; 2. Market Analysis and Consultation; and 3. 
Program Implementation Guidance. OMB and GSA completed Phase I, an 
initial implementation plan, in March of 2018. The plan, found at 
https://interact.gsa.gov/document/gsa-and-omb-phase-i-deliverable-attached, discusses government and industry stakeholder goals and 
concerns, the different types of portal provider models currently 
prevalent in the commercial market, and areas where legislative change 
or clarification are required to enable flexibility in the full and 
effective use of commercial e-commerce portals in accordance with the 
goals of section 846. The plan also outlines deliverables anticipated 
to be completed in FYs 18, 19, and 20.
    GSA is currently working on Phase II with the intent of delivering 
a proof of concept near the end of FY19. Phase II of the legislation 
requires (excerpt below):

    (2) PHASE II: MARKET ANALYSIS AND CONSULTATION.--Not later than 
one year after the date of the submission of the implementation plan 
and schedule required under paragraph (1), recommendations for any 
changes to, or exemptions from, laws necessary for effective 
implementation of this section, and information on the results of 
the following actions:
    (A) Market analysis and initial communications with potential 
commercial e-commerce portal providers on technical considerations 
of how the portals function (including the use of standard terms and 
conditions of the portals by the Government), the degree of 
customization that can occur without creating a Government-unique 
portal, the measures necessary to address the considerations for 
supplier and product screening specified in subsection (e), security 
of data, considerations pertaining to nontraditional Government 
contractors, and potential fees, if any, to be charged by the 
Administrator, the portal provider, or the suppliers for 
participation in the program established pursuant to subsection (a).
    (B) Consultation with affected departments and agencies about 
their unique procurement needs, such as supply chain risks for 
health care products, information technology, software, or any other 
category determined necessary by the Administrator.
    (C) An assessment of the products or product categories that are 
suitable for purchase on the commercial e-commerce portals.
    (D) An assessment of the precautions necessary to safeguard any 
information pertaining to the Federal Government, especially 
precautions necessary to protect against national security or 
cybersecurity threats.
    (E) A review of standard terms and conditions of commercial e-
commerce portals in the context of Government requirements.
    (F) An assessment of the impact on existing programs, including 
schedules, set-asides for small business concerns, and other 
preference programs.

II. Written Comments

    To assist GSA in meeting the requirements associated with Phase II 
of the implementation, GSA and OMB are inviting suppliers selling 
product through commercial e-commerce platforms to submit written 
comments. Comments should be submitted by July 20, 2018, which will 
enable the Government to take them into account as we are drafting our 
Phase II deliverable. (A separate RFI has been issued focused on e-
commerce platform operators.)
    GSA and OMB have developed a number of questions grouped around 
three focus areas: Product categories, terms and conditions, and 
program design. These three areas are central to the analysis required 
in paragraphs (A), (C), and (E) above. This information will also be 
used to help inform GSA about the general scope, shape, and types of 
products that should be considered for a proof of concept. In 
accordance with the Phase I implementation plan, the proof of concept 
is planned for launch in FY 2019. Each question is intended to provide 
respondents with a general framework for commenting. These questions 
are not intended to be all-inclusive; other comments and observations 
are encouraged.

1. Product Categories

    a. Identify which product types/categories/subcategories should be 
considered in scope for inclusion in the program. Describe the 
classification system used, if not product service codes or North 
American Industry Classification System (NAICS) codes. For each 
category/subcategory identified, include as many of the following as 
possible:
    i. Rationale for inclusion;
    ii. Assessment of supply chain risk, including the extent to which 
you believe counterfeit products are a significant problem,and 
mitigation strategies;
    iii. List existing e-commerce commercial portals on which you 
currently sell these products;
    iv. Level of visibility into country of origin, including 
compliance with the Buy American Act (BAA), other domestic sourcing 
restrictions, and existing trade agreements; including how these are 
verified; and

[[Page 27991]]

    v. If multiple categories/subcategories are identified, provide a 
suggested ranking.
    b. Identify which categories/subcategories should be excluded from 
the scope of this effort and the rationale.

2. Terms and Conditions (Ts&Cs)

    a. General
    i. To the extent you sell products as a third party through a 
commercial e-commerce portal, what Ts&Cs do you have with them?
    ii. What terms are unacceptable? What terms are absolute must-
haves?
    iii. Are there unique terms and conditions when looking at serving 
the Contiguous United States (CONUS) vs. Outside the Contiguous United 
States (OCONUS)? What are some that we might need to consider?
    iv. What should GSA be thinking about with respect to BAA and 
existing trade agreements (and implementing regulations)? How do you 
currently track/monitor country of origin for products, if at all?
    v. How is security of data addressed in your standard Ts&Cs?
    vi. If you currently sell through a portal, how are fees/fee 
structures addressed in the terms and conditions?
    b. Suitability of FAR Commercially Available Off-the-Shelf (COTS) 
Item Requirements: Please address the extent you believe the following 
clauses/provisions are consistent with and/or relevant to current, 
standard commercial practice when selling through a commercial e-
commerce portal. If they are not consistent and/or relevant, please 
indicate what obstacles they would present if applied to the section 
846 program. Conversely, if there are public policy reasons why any of 
these should be retained, please explain.

1. 52.212-1(a), NAICS/business size
2. 52.212-1(b), Submission of offers
3. 52.212-1(c), Period for acceptance of offers
4. 52.212-1(d), Product samples
5. 52.212-1(e), Multiple offers
6. 52.212-1(f), Late submissions, modifications, revisions, etc.
7. 52.212-1(g), Contract award
8. 52.212-1(h), Multiple awards
9. 52.212-1(i), Availability of requirements documents
10. 52.212-1(j), Unique entity identifier
11. 52.212-3(p), Ownership or Control of Offeror
12. 52.212-3(r), Predecessor of Offeror
13. 52.212-4(f), Excusable delays
14. 52.212-4(l), Termination for Government's convenience
15. 52.212-4(o), Warranty
16. 52.212-4(q), Other compliance
17. 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards
18. 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award
19. 52.219-4, Notice of Price Evaluation Preference for HUBZone Small 
Business Concerns
20. 52.219-8, Utilization of Small Business Concerns
21. 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business 
Set-Aside
22. 52.222-3, Convict Labor
23. 52.232-40, Providing Accelerated Payments to Small Business 
Subcontractors
24. 52.212-1(l), Debriefing
25. 52.212-3(i), Certification Regarding Knowledge of Child Labor for 
Listed End Products
26. 52.212-3(t), Public Disclosure of Greenhouse Gas Emissions and 
Reduction Goals
27. 52.212-4(a), Inspection and acceptance
28. 52.212-4(b), Assignment of claims
29. 52.212-4(c), Changes
30. 52.212-4(d), Disputes
31. 52.212-4(g), Invoice
32. 52.212-4(i)(1), Items accepted
33. 52.212-4(i)(3), Electronic Funds Transfer
34. 52.212-4(i)(4), Discount
35. 52.212-4(j), Risk of loss
36. 52.212-4(k), Taxes
37. 52.212-4(s), Order of precedence

3. Program Design

    a. Competition is a core goal of the program. Towards that end, the 
user needs to be able to see/compare products across multiple portals 
and/or suppliers. What is the best way to get to a single sign-on 
across portals?
    b. If you are not registered in the System for Award Management, 
would you be willing to register. Why or why not?
    c. The section 846 language stated both that all existing 
procurement laws applied and that GSA should strive to be consistent 
with commercial practice. To reconcile these objectives, in Phase I, 
GSA only proposed legislative changes necessary to reach program 
implementation, primarily around the nature of competition. For 
purposes of Phase II, what additional legislative changes GSA should 
consider proposing?
    d. In GSA's view, the nature of buying through an e-commerce portal 
brings a significant new level of competition into the micro-purchase 
world. GSA proposed raising the micro-purchase threshold to $25,000. 
What benefits and disadvantages do you see in a higher threshold? Would 
you recommend a higher threshold and, if so, what should it be?
    e. In the first phase of implementation, should this program be 
limited to orders within the contiguous United States? If so, why? If 
not, why not and what issues should be considered?
    f. How do the pricing algorithms respond to sudden increases in 
demand?
    g. As a supplier, do you have the capability to participate in 
either a public or private (or curated) `punchout' type of experience? 
Please explain.
    h. Implementation and operationalization of this program will 
entail the involvement of GSA, ordering agencies, portal providers, and 
third-party suppliers. GSA envisions its role primarily focusing on the 
following:
    i. Negotiating the contracts with the portal providers;
    ii. working with stakeholders to shape the scope of product 
offerings, based on suitability, potential challenges in managing 
supply chain risk, and other considerations;
    iii. working with agencies on effective use of protocols and 
safeguards to refine access to product offerings;
    iv. collecting, vetting and sharing data; and,
    v. developing guidance in consultation with OMB and training 
federal agencies in proper competitive procedures through the porta; 
and,
    vi. potentially validating the suppliers as responsible business 
partners. Do you agree with this description of roles and 
responsibilities for GSA in optimizing the user experience and the 
overall success of the program? Are there key items missing?
    i. What opportunities do you see for your existing Government 
business (and potential future new business)? How can we best design a 
program to promote small business utilization and new entrants into the 
federal marketplace?
    j. Proof of concept: As explained in the Phase I implementation 
plan, GSA intends to proceed with a proof of concept in FY 2019. What 
is your recommended vision for a proof of concept that would be both 
manageable and meaningful, including types of products offered?

    Dated: June 12, 2018.
Laura J. Stanton,
Assistant Commissioner, Office of Enterprise Strategy Management, 
Federal Acquisition Service, General Services Administration.
[FR Doc. 2018-12893 Filed 6-14-18; 8:45 am]
 BILLING CODE 6820-89-P