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The Department of Veterans Affairs (VA) is proposing to amend and update its VA Acquisition Regulation (VAAR) in phased increments to revise or remove any policy superseded by changes in the Federal Acquisition Regulation (FAR), to remove procedural guidance internal to VA into the VAAM, and to incorporate any new agency specific regulations or policies. These changes seek to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burden on contractors. The VAAM incorporates the VAAR as well as internal agency acquisition policy. VA will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are rewritten, will publish it in the Federal Register. To minimize the number of rules published, VA will combine relatable topics. This proposed rulemaking revises VAAR parts 831, 833, 852 and 871.

Statement of Need:

Included in the proposed changes to streamline the VAAR, implementing and supplementing the FAR where required, and removing internal agency guidance in keeping with the FAR principles concerning agency acquisition regulations, are clarifying that the cost principles apply to the negotiation of prices under fixed-price contracts as well as to costs under cost reimbursement contracts, and to contracts with educational institutions as well as those with commercial and non-profit organizations; Adding a definition section; And, adding language that pursuant to Pub. L. 114-328, the Small Business Administration (SBA) will also hear cases related to size, status, and ownership and control challenges under the VA Veterans First Contracting Program.

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Summary of the Legal Basis:

38 U.S.C. 501, 40 U.S.C. 121(c), 41 U.S.C. 1121(c)(3), 41 U.S.C. 1707, 48 CFR 301-1.304

Alternatives:

The revised VAAR will have 47 parts, grouped into 19 packages. VA did consider grouping all of the parts into one package, which would have resulted in one regulatory action. However, this approach or alternative was tried several years ago and the project ended up being terminated because of the complexity, time spent correcting errors, legal review, and inconsistency amongst the acquisition offices and other agencies. Another alternative would be to do nothing, which would undermine VA’s mission of simplifying the acquisition process and making it easier for potential vendors to do business with the VA.

Anticipated Costs and Benefits:

There are no transfers associated with this rulemaking.  VA is merely adding existing and current regulatory requirements to the VAAR and removing any guidance that is applicable only to VA’s internal operation processes or procedures.  There are no provisions constituting a collection or reduction of information under the Paperwork Reduction Act.  Therefore, we expect no increased and/or decreased PRA costs.

Risks: