[Federal Register: December 31, 2002 (Volume 67, Number 251)]
[Rules and Regulations]
[Page 80321-80322]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de02-31]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 39
[FAC 2001-11; FAR Case 2002-012; Item II]
RIN 9000-AJ53
Federal Acquisition Regulation; Section 508 Micro-Purchase
Exception Sunset Provision
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to extend the
electronic and information technology (Section 508) micro-purchase
exception to October 1, 2004.
DATES: Effective Date: January 1, 2003.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before March 3, 2003 to be
considered in the formulation of a final rule.
ADDRESSES: Submit written comments to: General Services Administration,
FAR Secretariat (MVA), 1800 F Street, NW., Room 4035, Attn: Ms. Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to: farcase.2002-
012@gsa.gov.
Please submit comments only and cite FAC 2001-11, FAR case 2002-
012, in all correspondence related to this case.
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. The TTY Federal Relay
Number for further information is 1-800-877-8973. For clarification of
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900, or Ms. Angelena Moy, Case Manager, at (703) 602-1302. Please cite
FAC 2001-11, FAR case 2002-012.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule extends the electronic and information technology
(EIT) micro-purchase exception until October 1, 2004. Previously, in
incorporating the Access Board standards, the FAR provided an exception
from the procurement regulations for micro-purchases until January 1,
2003. The Councils fully expected that many products would conform to
the standards within that timeframe and be marketed and labeled by the
manufacturer accordingly. However, industry is providing products at
varying levels of conformance to the standards, and product packaging
does not currently provide Section 508 conformance information, in most
cases.
The Government is continuing to make compliance a high priority,
and the award of many Federal EIT procurements have hinged on
accessibility. While the ``Buy Accessible'' information on the
Section508.gov Web site is helpful, not all firms have templates
completed for their products making it especially difficult for
Government purchase cardholders who are not contracting officers to
make informed EIT purchases through reasonable effort.
Typically, Government personnel who are not warranted contracting
officers use the purchase card to purchase commercial-off-the-shelf
items. Use of the purchase card makes it generally impractical to
comply with the EIT accessibility standards unless commercial-off-the-
shelf products are labeled for Section 508 standards compliance. The
Councils recognize the fact that almost all micro-purchases are made
using the Governmentwide commercial purchase cards, but also recognize
that the Government purchases $52 billion per year for EIT products and
services, of which only a very small percentage are acquired through
the micro-purchase process with credit cards. Most Government desktop
personal computers and other infrastructure are purchased and
controlled through large agency acquisitions.
By October 1, 2004, we are hopeful that vendors will provide
statements related to product conformance to the Section 508 standards
as part of their marketing information and their outer
[[Page 80322]]
packaging labeling. As this occurs, Federal Government cardholders can
make informed EIT purchases that conform to the Access Board's
standards, and the micro-purchase exception will no longer be needed.
Without the extension of the micro-purchase exception, all micro-
purchases may have to go through a special evaluation to ensure they
comply with EIT Standards. EIT micro-purchases would be forwarded to
contracting offices for purchase. This would significantly increase the
workload in procurement offices and the finance offices, causing a
reduction in efficiency and delivery (increased procurement lead-
times). The potential costs to industry cannot be measured.
The Councils realized there might be some concern within the
disability advocacy groups and the Government that extending the micro-
purchase exemption will signal that the Government is relaxing the
implementation period. That is not the case. It is only intended to
deal with the small portion of EIT that is acquired with credit cards
(micro-purchases) and the practical reality that the lack of package
labeling, or other manufacturer accessibility information, makes
informed decision making by cardholders especially difficult. To help
in determining the appropriate next steps for addressing the
accessibility of EIT micro-purchases, the Councils invite respondents
to address the following questions in addition to providing comments on
the rule.
Any and all comments related to this rule are welcomed. Note that
public comments provided in response to this notice will be available
in their entirety to any requester, including any requester under the
Freedom of Information Act (5 U.S.C. 552). Therefore, we caution
respondents not to provide proprietary or other business sensitive
information. Under no circumstances should respondents provide any
information unless they do so with a clear understanding that it will
be made available to the public.
1. For EIT industry respondents, please include in your comments
responses to the following questions:
a. What type of training is your company employing to educate your
developers (hardware and software) and salespersons regarding the
section 508 requirements?
b. What mechanisms or approaches should the Government consider to
ensure EIT micro-purchases (products and services) are accessible?
c. Do you anticipate your company will label its EIT products with
buyer information regarding the accessibility aspects of the product
being offered for sale? If so, when?
d. Do you offer a complete template of accessibility information
for each of your EIT products and services on your Web site? If no, why
not?
e. Currently, what process does your company employ to provide
information to potential Government purchasers regarding the
accessibility features of the products manufactured or sold?
2. For other respondents, please include in your comments responses
to the following questions:
a. What mechanisms or approaches should the Government consider to
ensure EIT micro-purchases (products and services) are accessible?
b. Currently, what type of training is being employed by your
organization to educate purchasers and users regarding the Section 508
requirements? Is any training specifically geared towards cardholders
and micro-purchases? If so, how do you explain and communicate the
Section 508 requirements?
This is not a significant regulatory action and, therefore, was not
subject to 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.
B. Regulatory Flexibility Act
The interim rule is not expected to 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 for
purchases under $2,500 (a ``micro-purchase''), no competitive
quotations have to be obtained and micro-purchases are no longer
reserved exclusively for small firms. Therefore, an Initial Regulatory
Flexibility Analysis has not been performed. The Councils will consider
comments from small entities concerning the affected FAR Part in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 601, et seq. (FAC 2001-11,
FAR case 2002-012), in correspondence.
C. 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.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because the rule extends an exception that would otherwise
impose burdens that the Government and contractors are not prepared to
meet. However, pursuant to Public Law 98-577 and FAR 1.501, the
Councils will consider public comments received in response to this
interim rule in the formation of the final rule.
List of Subjects in 48 CFR Part 39
Government procurement.
Dated: December 20, 2002.
Jeremy F. Olson,
Acting Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 39 as set forth
below:
PART 39--ACQUISITION OF INFORMATION TECHNOLOGY
1. The authority citation for 48 CFR part 39 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).
39.204 [Amended]
2. Amend section 39.204 in the first sentence of paragraph (a) by
removing ``January 1, 2003'' and adding ``October 1, 2004'' in its
place.
[FR Doc. 02-32743 Filed 12-30-02; 8:45 am]