OFFICE OF FEDERAL PROCUREMENT POLICY (OFPP) REGULATION NO. 1; FEDERAL PROCUREMENT REGULATORY SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000200070010-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: September 6, 2000
• Sequence Number: 10
• Publication Date: December 22, 1975
• Content Type: MEMO

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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
DEC 2 2 1975
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Office of Federal Procurement Policy (OFPP) Regulation
No. 1; Federal Procurement Regulatory System
Enclosed is the initial draft of a regulation to be issued by the
Administrator for Federal Procurement Policy pursuant to Public
Law 93-400, which requires that the Administrator establish (i) a
system of coordinated and, to the extent feasible, uniform
procurement regulations for the executive agencies, and (ii)
criteria and procedures for soliciting the viewpoints of
interested parties in the development of procurement policies,
regulations, procedures and forms. This regulation is the first
step in accomplishing these objectives.
Official agency views on the enclosed draft OFPP Regulation No. 1
should be submitted to the Administrator for Federal Procurement
Policy by February 29, 1976. Following receipt of comments, a
public meeting will be scheduled for the purpose of hearing oral
presentations.
In addition, the Department of Defense and the National
Aeronautics and Space Administration are requested to begin
preparation of a joint plan of action for a workable common
procurement regulation, for submission to the Administrator by
July 1, 1976.
Further, the Department of Defense and the General Services
Administration are requested to begin the preparation of a joint
plan of action for implementation of the requirements of OFPP
Regulation No. 1, for submission to the Administrator by July 1,
1976, the intended effective date of the regulation. This effort
should include a long range plan providing for eventual
publication of the Armed Services Procurement Regulation (ASPR)
and Federal Procurement Regulations (FPR) in the same Title of
the Code of Federal Regulations, with a common format and
numbering system.
Questions may be referred to Mr. LeRoy J. Haugh, Assistant
Administrator for Regulations, telephone [phone].
Hugh E. Witt
Administrator for
Federal Procurement Polic
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DRAFT
OFFICE OF FEDERAL PROCUREMENT POLICY (OFPP) REGULATION NO. 1
Federal Procurement Regulatory System
1. Purpose.
a. The purpose of this regulation is to establish the
Federal Procurement Regulatory System (FPRS), an integrated
system of coordinated and, to the extent feasible, uniform
procurement regulations for the executive agencies, under
the direction of the Administrator for Federal Procurement
Policy.
b. The objectives of the system are to bring greater
coordination, simplicity, and uniformity into the Federal
procurement process, to arrest and reduce the proliferation
of diverse and inconsistent procurement regulations,
including those implementing or supplementing the primary
regulations, and to establish criteria and procedures for
public participation in the regulatory process.
2. Background.
Public Law 93-400, which established the office of
Federal Procurement Policy (OFPP) , delineates the functions
of the Adrainistrator for Federal Procurement Policy. This'
regulation implements the following provisions of that law:
a. Establishment of a system of coordinated and, to the
extent feasible, uniform procurement regulations for the
executive agencies; and
b. Establishment of criteria and procedures for
soliciting the viewpoints of interested parties in the
development of procurement policies, regulations,
procedures, and forms.
3. Authority.
Under Public Law 93-400, authority for Federal
procurement policy is vested in the Administrator for
Federal Procurement Policy. All executive agency
procurement olio s
_p _~iYrec ulation, rocedures, and forms are
subject tc those prescribed by the `Admina strator.
4. Applicability.
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The provisions of this regulation apply to all executive
agencies of the Federal Government making procurements from
appropriated funds of :
(a) property other than real property in being;
(b) services, including research and development; and
(c) construction, alteration, repair, or maintenance of
real property.
The term "executive agency" means an executive department, a
military department, and an independent establishment within
the meaning of sections 101, 102, and 104(1), respectively,
of. title 5, United States Code, and also a wholly-owned
Government corporation within the meaning of section 101 of
the Government Corporation Control Act (31 U.S.C. 846).
5. Federal Procurement Regulatory System FPRS .
a. The FPRS, under the direction of the OFPP, is hereby
established, and shall consist of: OFPP Regulations,
applicable to all executive agencies; the Armed Services
Procurement Regulation ASPR), app 1cable to t e Department
o Defense DOD) and-the National Aeronautic-s--and-Space
Administration (NASA) ; and tie ederal Procurement
Regulaons (FPR) , pplicable, except for NASA, to the
civilian execute-iveT agencies and in certain authorized -areas
to a _`execu is~e agencies. In addition, the FPRS includes
the secondary procurement regulations of executive agencies
which implement or supplement OFPP Regulations, the ASPR, or
the FPR.
b. The FPRS embraces not only the content of
procurement regulations, but also their format,. numbering,
methods of publication and distribution, and controls over
implementing and supplementing regulations.
c. ASPR and FPR policies, regulations, procedures, and
forms shall be in accordance with Public Law 93-400, OFPP
Regulations and other directives, and other applicable laws
arid regulations.
d. OFPP Regulations will be issued by the Administrator
for Federal Procurement Policy, and will deal with major
procurement policy issues. OFPP Regulations will be
independent of the Office of Management and Budget (OMB)
system of Circulars and Bulletins.
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e. In addition to issuing regulations, OFPP will, on a
selective basis, coordinate the development of, or approve
in advance, the text of ASPR and FPR provisions. Such OFPP
coordination or approval will be transmitted to DOD and the
General Services Administration (GSA), by numbered letter,
and the text, when published, shall be identified as having
been so approved.
f. 'Implementing and supplementing regulations issued by
executive agencies shall not contain provisions which
duplicate, are inconsistent with, or increase the use of any
authority, policy, or requirement provided in OFPP
Regulations, the ASPR, or FPR. DOD and GSA shall review
agency and department regulations to assure compliance and
control.
g. One-time exceptions or
deviations from
the
requirements of OFPP Regulations may
be granted in the
same
manner as authorized by the ASPR and
FPR for ASPR and
FPR
deviations. A copy of each such
exception or deviation
'authorization shall be furnished
the Administrator
for
Federal Procurement Policy. Other deviations from OFPP
Regulations, such as continuing or class deviations,' must be
approved in advance by the Administrator.
h. Executive agencies authorized to issue collateral
regulations which, although not primarily concerned with the
procurement process, have an effect on Federal procurement,
shall coordinate such regulations with the principal
contracting agencies affected and the OFPP prior to
publication for comment in the Federal Register.
l6. Development and Issuance of the ASPR and FPR.
a. Subject to general guidance of the Administrator for
Federal Procurement Policy, the Secretary of Defense and the
Administrator of General Services may prescribe instructions
and procedures for the development and issuance of the ASPR
and FPR, respectively. Existing organizations for this
purpose, such as the ASPR Committee in the Office of the
Assistant Secretary of Defense (Installations and
Logistics), DOD, and the FPR staff in GSA, may continue to
be utilized.
b. DOD and GSA, jointly, shall establish a procedure
for close coordination between the ASPR and FPR which will
minimize duplication of effort and achieve the greatest
feasible uniformity in the development and revision of the
two regulations. Such procedure shall. include provisions
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for consultation with the OFPP on significant issues, and
for otherwise irreconcilable differences to be resolved by
the Administrator for Federal Procurement Policy. In areas
where both primary regulations now have coverage, neither
agency will amend that coverage without the concurrence of
the other. Changes or additions to the ASPR and FPR shall
be uniform except to the extent necessary to accommodate
significant differences in laws, program requirements, or
agency operations. Such accommodations shall be kept to a
minimum.
c. In the development of the ASPR and FPR, the views
and, so far as possible, agreement of agencies and
departments affected shall be obtained. For coordination
and advisory purposes, existing mechanisms, such as the ASPR
Committee and its subcommittee structure within DOD, and the
FPR staff and the FPR Committee (formerly the Interagency
Procurement Policy Committee) under GSA cognizance may be
utilized. In addition, the Planning Staff of the
Interagency Procurement Policy Group may be consulted on
significant issues.
7. Public Participation.
.a. The views of interested non-Governmental parties and
organizations shall be given due consideration in the
formulation of Federal procurement policy. Accordingly, the
public will be afforded an opportunity to comment on
proposed OFPP Regulations and on proposed significant
changes or additions to the ASPR and FPR by means of the.
publication of a notice in the Federal Register, and in
other publications as appropriate. Such notice shall
include a statement of purpose and the text or a summary of
the proposed issuance, changes, or additions, and shall
invite interested parties to comment on the proposals. If a
summary is published, the notice shall advise where the text.
may be examined. The notice shall also advise whether a
copy of any related agency or other official report or
recommendation is available for examination. Any
determination by the Secretary of Defense or the
Administrator of General Services, or. their designees for
such purpose, as to whether a particular change or addition
to the ASPR or FPR, respectively, is a "significant" change
or addition as contemplated by this regulation, shall be
final.
b. Lists will be maintained of industry associations,
professional societies, and other interested parties that
have expressed a continuing desire to comment on proposed
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OFPP Regulations or proposed changes in the ASPR and FPR,
and comments on substantive changes will ordinarily be
solicited directly from such associations and parties in
addition to.any notice that may be published in the Federal
Register.
c. The solicitation of views' from outside the
Government may be waived, with the advance approval of the
Administrator for Federal Procurement Policy, where
circumstances make such solicitation impracticable, such as
a requirement to implement a. new statute in a relatively
short time.
d. Normally, 60 days shall be provided for the
submission of comments, unless a shorter time period is
required by unusual circumstances.
e. When an executive agency or component determines
that a public meeting would materially benefit the
consideration of the issues in connection-with the adoption,
amendment, or repeal of a procurement policy or regulation,
or would be likely to develop significant additional
information or views, or provide useful public visibility to
regulatory determinations, the agency or component may
convene such a public meeting.
f. Unsolicited proposals for changes or additions to
OFPP Regulations, the ASPR, and FPR shall be considered, and
the reasons for any rejection shall be furnished to the
proposers.
g. Regulations of executive agencies and their major
components which amplify or otherwise depart from the
substance of OFPP Regulations, the ASPR, and FPR will be
issued in a manner consistent with the foregoing procedures,
after first obtaining any necessary deviation authorization.
8. Public Meetings.
a. When a public meeting is to be held, notice shall be
published in the Federal Register at least 10 days prior
thereto. The notice shall give the time and place of the
meeting and shall include a statement of purpose and either
the text or a summary of the matter to be considered. If a
summary is published, the notice shall advise where the text
may be examined. The notice shall advise whether acopy of
any related agency or other official report or
recommendation is available for examination. The notice
shall also invite interested organizations, associations,
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firms, a% embers of the public to submit data, views, or
arguments in writing, and shall offer an opportunity for
oral presentation by or on behalf of any interested party
making a written submission at least 24 hours in advance of
the meeting.
b. Criteria and procedures for , public meetings
involving proposed policies and regulations of the Office of
Federal Procurement Policy are the subject of a separate
OFPP Regulation.
9. Advance Notice to OFPP.
DOD and GSA shall give the Administrator for Federal
Procurement Policy advance notice of all major procurement
regulations under consideration. The purposes of this
requirement are: (a) to enable the Administrator to keep
the Congress fully and currently informed; (b) to permit
timely designation by the Administrator of proposed
procurement policies and regulations which shall be subject
to formal public meetings of the OFPP (in accordance with
Section 14(b) of Public Law 93-400) ; (c) to permit
:identification of regulations whose text is to be approved
by the Administrator; and (d) to ensure the maximum feasible
uniformity in the regulations.
10. Reportina.
DOD and GSA shall submit to OFPP a quarterly listing of
all open cases or actions in process to adopt, repeal, or
amend either the primary procurement regulations (ASPR and
FPR) or the subsidiary procurement regulations of other
executive agencies. Such listing shall be brief, but
descriptive enough to indicate the substance and purpose of
each action contemplated.
DRAFT
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 ^ UNCLASSIFIED
^ CONFIDENTIAL
SUBJECT: (Optional)
FROM: Director of Logistics
2 C 02 = Building
STATINTL
TO: (Officer designation, room number, and
building)
1.
Agr&
2- A-DD/A
7 D 24 Headquarters
6.
STATINTL
FORM
3-62
STATINT
STATI Nil
SECRET
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
Coordinated with John
AGC/OL, in draft.
STATINTL
Office of Federal Procure-
ment Policy Regulation No. 1
was issued in draft form on
22 Dec 75. The basic prob-
lem with the regulation was
that it placed DOD and NASA
under the ASPR with all other
agencies coming under the
FPR. The attached letter is
the culmination of several
meetings between 51
, officials at
L OFPP, and me. It has been
reviewed by OFPP, and we
have been told that it is
approved. Mr. Witt, the Ad-
ministrator for OFPP, will
provide written approval by
separate correspondence.
The specific request is in
the next to last paragraph.
Important in the request is
the fact that our flexibility
i
i
s ma
ntained since we are
agreeing only to operate our
procurement system to the
"maximum extent possible" in
accordance with the ASPR.
OFPP has requested our okay
t
di
o
stribute a copy of the
attached letter, along with
their approval, to the Secre-
tary of Defense since that
61OA e o ase nuy8g 'A -Fi-MQ - AA 409 it
Ins[
ENTIAL
USE ONLY
D INTERNAL
OFFICER'S
RECEIVED FORWARDED INITIALS
^ UNCLASSIFIED
10 AUG 1976
g2onn7QQj n-1
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department controls the ASPR.
If okay with you, we will
provide such approval sepa-
rately and only after we have
reviewed and accepted the OFPP
approval letter.
Att.
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