Federal Acquisition Regulation (FAR): Professional services proposals evaluation,

[Federal Register: September 24, 1999 (Volume 64, Number 185)]

[Rules and Regulations]

[Page 51841-51842]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr24se99-23]

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15 and 37

[FAC 97-14; FAR Case 97-038; Item VIII]

RIN 9000-AI07

Federal Acquisition Regulation; Evaluation of Proposals for Professional Services

AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to provide guidance on the evaluation of proposals that include uncompensated overtime hours.

EFFECTIVE DATE: November 23, 1999.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Jeremy F. Olson, Procurement Analyst, at (202) 501-3221. Please cite FAC 97-14, FAR case 97-038.

SUPPLEMENTARY INFORMATION:

1. Background

   A final rule published as Item VII of Federal Acquisition Circular (FAC) 97-01 in the Federal Register on August 22, 1997 (62 FR 44813) elevated guidance regarding uncompensated overtime from the Defense Federal Acquisition Regulation Supplement (DFARS) Part

   [[Page 51842]]

   237 to FAR Part 37, and elevated a DFARS solicitation provision to FAR 52.237-10, Identification of Uncompensated Overtime. However, the FAR rule in FAC 97-01 did not address the evaluation of proposals that include uncompensated overtime.

   Therefore, a proposed FAR rule was published in the Federal Register on August 24, 1998 (63 FR 45112), to add guidance at FAR 15.305(a)(1) and FAR 37.115-2(c) on the evaluation of proposed uncompensated overtime hours. One respondent submitted comments in response to the proposed rule. The Councils considered the respondent's comments in the development of the final rule and converted the proposed rule to a final rule without change.

   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.

2. Regulatory Flexibility Act

   The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify 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 guidance added to FAR Parts 15 and 37 is consistent with the existing policy pertaining to uncompensated overtime at FAR 37.115 and 52.237-10.

3. Paperwork Reduction Act

   The Paperwork Reduction Act does not apply because the changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

   List of Subjects in 48 CFR Parts 15 and 37

   Government procurement.

   Dated: September 14, 1999. Edward C. Loeb, Director, Federal Acquisition Policy Division.

   Therefore, DoD, GSA, and NASA amend 48 CFR Parts 15 and 37 as set forth below:

   1. The authority citation for 48 CFR Parts 15 and 37 continues to read as follows:

      Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

      PART 15--CONTRACTING BY NEGOTIATION

   2. In section 15.305, amend paragraph (a)(1) by adding a parenthetical as the penultimate sentence to read as follows:

      15.305 Proposal evaluation.

      (a) * * *

      (1) * * * (See 37.115 for uncompensated overtime evaluation.) * * * * * * * *

      PART 37--SERVICE CONTRACTING

   3. In section 37.115-2, add paragraph (c) to read as follows:

      37.115-2 General policy.

      * * * * *

      (c) Contracting officers must ensure that the use of uncompensated overtime in contracts to acquire services on the basis of the number of hours provided will not degrade the level of technical expertise required to fulfill the Government's requirements (see 15.305 for competitive negotiations and 15.404-1(d) for cost realism analysis). When acquiring these services, contracting officers must conduct a risk assessment and evaluate, for award on that basis, any proposals received that reflect factors such as:

      (1) Unrealistically low labor rates or other costs that may result in quality or service shortfalls; and

      (2) Unbalanced distribution of uncompensated overtime among skill levels and its use in key technical positions.

      [FR Doc. 99-24417Filed9-23-99; 8:45 am]

      BILLING CODE 6820-EP-P