[Federal Register: July 5, 2000 (Volume 65, Number 129)]
[Rules and Regulations]               
[Page 41378-41380]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Parts 501, 511, 512, 525, 532, 537, and 552

RIN 3090-AH22

Payment Information and Clarification of Provisions and Clauses 
Applicable to Contract Actions Under the Javits-Wagner-O'Day Act

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.


SUMMARY: The General Services Administration (GSA) is issuing a final 
rule to rewrite the General Services Administration Acquisition 
Regulation (GSAR), Foreign Acquisition, for consistency with the recent 
Federal Acquisition Regulation (FAR) rewrite. This final rule also 
deletes a provision for brand name or equal purchase descriptions now 
covered by a FAR provision, adds a clause to notify contractors of 
payment information available electronically, and clarifies that 
certain provisions and clauses for building services contracts do not 
apply to contract actions made under the Javits-Wagner-O'Day Act.

DATES: Effective Date: July 24, 2000.

FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy 
Division, (202) 208-6726.


A. Background

    The FAR published a final rewrite of FAR Part 25, Foreign 
Acquisition, in the Federal Register on December 27, 1999 (64 FR 
72414). This rule reorganizes the GSAR for consistency with the FAR 
changes. It also eliminates a provision and a clause, which duplicate 
coverage in the FAR, regarding evaluation of offers and delivery under 
contracts subject to trade agreements. It does not place any new 
requirements on offerors or contractors.
    The FAR published a final rule on use of brand name or equal 
purchase descriptions in the Federal Register on June 17, 1999 (64 FR 
32740). This rule eliminates a GSAR provision that duplicates coverage 
now contained in the provision at FAR 52.211-6, Brand Name or Equal.
    For invoice payments made by GSA, payment information is available 
on the Internet. This rule provides a clause to notify contractors that 
the information is available and how to access it. A GSA contractor may 
access this information at its discretion to track the date and amount 
of payments made by GSA. Access to timely payment information may help 
a contractor to improve its financial management.
    This rule also clarifies that certain provisions and clauses 
prescribed at GSAR 537.110 do not apply to contracts for building 
services initiated under the authority of the Javits-Wagner-O'Day Act 
(JWOD). The provision at GSAR 552.237-70, Qualifications of Offerors, 
and the clause at 552.237-71, Qualifications of Employees, do not apply 
to JWOD contract actions. Qualifications of JWOD participating 
nonprofit agencies are established by the Committee for Purchase from 
People Who Are Blind or Severely Disabled (see FAR subpart 8.7). This 
clarification will help avoid potential conflict with the rules 
established by the Committee, which have precedence.

B. Executive Order 12866

    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 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 final rule does not constitute a significant GSAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public commenters is not required. However, GSA will consider 
comments from small entities concerning the affected GSAR parts in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S. 601, et seq., in 

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping or information collection 
requirements, or otherwise collect information from offerors, 
contractors, or members of the public that require approval of the 
Office of Management and Budget under 44 U.S.C. 3501 et seq.

E. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule under 5 U.S.C. 804. This rule was 
submitted to Congress and GAO under 5 US.C. 801.

F. Determination To Issue a Final Rule

    GSA expects this rule will have no significant cost or 
administrative burden on contractors or offerors. The changes improve 
clarity and avoid potential conflicts with FAR rules.

List of Subjects in 48 CFR Parts 501, 511, 512, 525, 532, 537 and 

    Government procurement.

Final Rule

    Accordingly, GSA amends 48 CFR Parts 501, 511, 512, 525, 532, 537 
and 552 as set forth below:
    1. The authority citation for 48 CFR Parts 501, 511, 512, 525, 532, 
537 and 552 continues to read as follows:

    Authority: 40 U.S.C. 486(c).


    2. Amend section 501.106 as follows: Delete the GSAR Reference to 
511.170-3(a) and OMB Control No. 3090-0203, delete the GSAR Reference 
to 511.170-3(c) and OMB control No. 3090-0203, delete the GSAR 
Reference to 552.211-70 and OMB Control No. 3090-0203, and add a GSAR 
Reference to 511.140-70 and OMB Control N. 3090-0203.

    3. Redesignate section 511.170 as 511.104 and revise the section 
title to read as follows:

511.104  Use of brand name or equal purchase descriptions.

    4. Redesignate section 511.170-3 as section 511.104-70, delete 
paragraphs (c) and (d), and add a new paragraph (c) to read as follows:

511.104-70    Solicitation provisions

* * * * *
    (c) If you use brand name or equal purchase descriptions for some 
component parts of an end item, you may limit the application of the 
provision at FAR 52.211-6 to the specified components


    5. In section 512.301, revise paragraph (a)(3) to read as follows:

512.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (a) * * *
    (3) 552.212-72, Contract Terms and Conditions Required to Implement

[[Page 41379]]

Statutes or Executive Orders Applicable to GSA Acquisitions of 
Commercial Items, when listed clauses apply. The clause provides for 
the incorporation by reference of terms and conditions required to 
implement provisions of law or executive orders that apply to 
commercial item acquisitions.
* * * * *


525.105, 525.105-70, 525.109 and Subpart 525.4   [Removed]

    6. Remove sections 525.105, 525.105-70, 525.109, and Subpart 525.4. 
Add Subparts 525.5 and 525.11 to read as follows:

Subpart 525.5--Evaluating Foreign Officers--Supply Contracts

525.570  Procurement of hand or measuring tools or stainless steel 
flatware for DOD.

    (a) Stainless steel flatware means special order and stock items of 
stainless steel flatware purchased for DOD, including, but not limited 
to, the following National Stock Numbers (NSN):











    (b) Purchases of hand or measuring tools or stainless steel 
flatware exceeding the simplified acquisition threshold by DOD must be 
domestic end products. In the case of stainless steel flatware, the 
Secretary of the Department concerned can make an exception. The 
individual must determine that a satisfactory quality and sufficient 
quantity produced in the United States or its possessions are not 
available when needed at domestic market prices.
    (c) If GSA solicitations of hand or measuring tools or stainless 
steel flatware include DOD requirements, GSA will apply the DOD 
restrictions. The bases for applying the DOD restriction to GSA 
acquisitions are:
    (1) DOD's restrictions apply to requisitions of such items from the 
GSA stock program.
    (2) The impracticality of establishing a dual supply system to 
satisfy the requirements of civilian and military agencies.
    (3) GSA may reject any offer when it is considered necessary for 
reasons of national interest.

Subpart 525.11--Solicitation Provisions and Contract Clauses

525.1101  Acquisition of supplies.

    If you include DOD requirements for hand or measuring tools or 
stainless steel flatware in the solicitation for an acquisition 
estimated to exceed the simplified acquisition threshold, insert 
552.225-70, Notice of Procurement Restriction--Hand or Measuring Tools 
or Stainless Steel Flatware, in the solicitation and resulting 


    7. Amend section 532.908 to add paragraph (c) to read as follows:

532.908  Contract clauses.

* * * * *
    (c) Solicitations, purchase orders, contracts, and leases over the 
micropurchase theshold. Insert 552.232-78, Payment information:
    (1) In all solicitations, purchase orders, and contracts, including 
acquisitions of leasehold interests in real property.
    (2) In task and delivery orders if the contract that the order is 
placed against does not include the clause.


    8. Revise section 537.110 to read as follows:

537.110  Solicitation provisions and contract clauses.

    The following provision and clauses apply to contracts for building 
    (a) If the contract is expected to exceed the simplified 
acquisition threshold and it is not initiated under the Javits-Wagner-
O'Day Act:
    (1) Insert 552.237-70, Qualifications of Offerors, in the 
    (2) Insert 552.237-71, Qualifications of Employees, in the 
solicitation and contract. If needed, use supplemental provisions or 
clauses to describe specific requirements for employees performing work 
on the contract.
    (b) Insert 552.237-72, Prohibition Regaring ``Quasi-Military Armed 
Forces,'' in solicitations and contracts for guard service.


552.211-70  [Removed and Reserved]

    9. Remove and reserve section 552.211-70.

552.212-71  [Amended]

    10. In section 552.212-71, revise the date of the clause to read 
``JUL 2000)'' and in paragraph (b) add ``_552.232-78 Payment 
Information'' in numerical order.

    11. In section 552.212-72, revise the date of the clause to read 
``(JUL 2000)'', in paragraph (a) delete ``_552.225-8 Buy American Act--
Trade Agreement's--Balance of Payments Program Certificate'', and in 
paragraph (b) delete ``_552.225-9 Buy American Act--Trade Agreements--
Balance of Payments Program.''

552.225-8 and 552.225-9  [Removed]

    12. Remove sections 552.225-8 and 552.225-9

    13. In section 552.225-70, revise the introductory text to read as 

552.225-70  Notice of Procurement Restriction--Hand or Measuring Tools 
or Stainless Steel Flatware.

    As prescribed in 525.1101, insert the following clause:
* * * * *

    14. Add section 552.232-78 to read as follows:

552.232-78  Payment Information.

    As prescribed in 532.908(c), insert the following information.


    The General Services Administration (GSA) makes information on 
contract payments available electronically at http://www.finance.gsa.gov. 
The Contractor may register at the site and review its record of payments. 
This site provides information only on payments made by GSA, not by 
other agencies.

(End of clause)

    15. In section 552.243-72, revise the clause date and paragraph 
(b)(1)(vii) to read as follows:

552.243-72  Modifications Award Schedule).

* * * * *
* * * * *
    (b) * * *
    (1) * * *
    (vii) Any information requested by 52.212-3(f), Offeror 
Representations and Certifications--Commercial Items, that may be 
necessary to assure compliance with FAR 52.225-1, Buy American Act--
Balance of Payments Programs--Supplies.
* * * * *

[[Page 41380]]

    Dated: June 19, 2000.
David A. Drabkin,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 00-16766 Filed 7-03-00; 8:45 am]