[Federal Register: May 31, 2002 (Volume 67, Number 105)]
[Proposed Rules]               
[Page 38057-38059]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31my02-27]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 252

[DFARS Case 2002-D001]

 
Defense Federal Acquisition Regulation Supplement; Electronic 
Submission and Processing of Payment Requests

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement Section 1008 of the National 
Defense Authorization Act for Fiscal Year 2001. Section 1008 requires 
contractors to submit, and DoD to process, payment requests in 
electronic form.

DATES: DoD will consider all comments received by July 30, 2002.

ADDRESSES: Respondents may submit comments directly on the World Wide 
Web at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an 
alternative, respondents may e-mail comments to: dfars@acq.osd.mil. 
Please cite DFARS Case 2002-D001 in the subject line of e-mailed 
comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Ms. Sandra Haberlin, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 2002-D001.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra Haberlin, (703) 602-0289.

SUPPLEMENTARY INFORMATION:   

A. Background

    This rule proposes to add a new DFARS subpart and a contract clause 
to implement Section 1008 of the National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398). Section 1008 provides that--
     Contractors must submit electronically, and DoD must 
process electronically, requests for payment under DoD contracts;
     DoD must transmit any supporting documentation 
electronically within DoD;
     The Secretary of Defense may exempt cases in any category 
if the Secretary determines that the requirement for using electronic 
means for submitting or transmitting payment requests is unduly 
burdensome; and
     This requirement shall apply to contracts for which 
solicitations are issued after June 30, 2001. DoD may delay 
implementation if the Secretary of Defense makes a finding that it is 
impracticable to implement this requirement by June 30, 2001, and 
publishes such notice in the Federal Register. In no event may 
implementation be delayed to a date after October 1, 2002.
    Consistent with Section 1008(b) of the Defense Authorization Act, 
DoD submitted a plan to Congress describing how Section 1008 would be 
implemented. On August 21, 2001, DoD published a notice in the Federal 
Register (66 FR 43841) which announced a delay in implementation of 
Section 1008 until October 1, 2002.
    This proposed DFARS rule--
     Requires contractors to submit requests for contract 
financing and invoice payments in electronic form;
     Requires DoD officials receiving payment requests in 
electronic form to process the payment requests and supporting 
documentation in electronic form;
     Identifies three acceptable electronic forms for 
transmission of payment requests. The rule also permits the contracting 
officer to authorize the contractor to use another electronic form, 
with the concurrence of the payment office and the contract 
administration office; and
     Identifies exemption categories being considered by DoD. 
The Director of Defense Procurement intends to process a request for 
the Secretary of Defense to approve exemptions for the categories 
identified in the rule.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule 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 any start-up 
costs that contractors will incur to comply with the rule are expected 
to be minimal, and should be offset by the reduced administrative costs 
that are expected to result from the electronic submission and 
processing of invoices. In addition, the rule provides for an exemption 
to the requirement for electronic submission in cases where the 
requirement would be unduly burdensome. Therefore, DoD has not 
performed an initial regulatory flexibility analysis. DoD invites 
comments from small businesses and other interested parties. DoD also 
will consider comments from small entities concerning the affected 
DFARS subparts in accordance with 5 U.S.C. 610. Such comments should be 
submitted separately and should cite DFARS Case 2002-D001.

C. Paperwork Reduction Act

    This rule does not impose any additional information collection 
requirements that require the approval of the Office of Management and 
Budget (OMB) under 44 U.S.C. 3501, et seq. The information collection 
requirements for contractors to provide non-electronic payment requests 
already have been approved by OMB as indicated below:

----------------------------------------------------------------------------------------------------------------
                                                                 OMB control
         FAR clause No.                  Clause title                No.                Expiration date
----------------------------------------------------------------------------------------------------------------
52.216-7.......................  Allowable Cost and Payment..       9000-0069  June 30, 2002.

[[Page 38058]]


52.232-7.......................  Payments Under Time-and-           9000-0070  June 30, 2002.
                                  Materials and Labor-Hour
                                  Contracts.
52.232-12......................  Advance Payments............       9000-0073  June 30, 2002.
52.232-16......................  Progress Payments...........       9000-0010  Sept 30, 2002.
52.232-32......................  Performance-Based Payments..       9000-0138  Sept 30, 2004.
----------------------------------------------------------------------------------------------------------------

    Extensions of the currently approved information collection 
requirements under OMB control numbers 9000-0069, 9000-0070, 9000-0073, 
and 9000-0010 are current being processed (see the following Federal 
Register notices, respectively, for further information: 67 FR 19558, 
April 22, 2002; 67 FR 17675, April 11, 2002; 67 FR 17676, April 11, 
2002; 67 FR 34683, May 15, 2002).

List of Subjects in 48 CFR Parts 232 and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, DoD proposes to amend 48 CFR Parts 232 and 252 as 
follows:
    1. The authority citation for 48 CFR Parts 232 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 232--CONTRACT FINANCING

    2. Subpart 232.70 is added to read as follows:

Subpart 232.70--Electronic Submission and Processing of Payment 
Requests

Sec.
232.7000  Scope of subpart.
232.7001  Definitions.
232.7002  Policy.
232.7003  Procedures.
232.7004  Contract clause.


232.7000  Scope of subpart.

    This subpart prescribes policies and procedures for submitting and 
processing payment requests in electronic form to comply with 10 U.S.C. 
2227.


232.7001  Definitions.

    Electronic form and payment request, as used in this subpart, are 
defined in the clause at 252.232-7XXX, Electronic Submission of Payment 
Requests.


232.7002  Policy.

    (a) Contractors must submit payment requests in electronic form, 
except for--
    (1) Purchases paid for with a Governmentwide commercial purchase 
card;
    (2) Awards made to foreign vendors for work performed outside the 
United States;
    (3) Classified contracts or purchases (see FAR 4.401) when 
electronic submission and processing of payment requests could 
compromise the safeguarding of classified information or national 
security;
    (4) Contracts awarded by deployed contracting officers in the 
course of military operations, including, but not limited to, 
contingency operations as defined in 10 U.S.C. 101(a)(13) or 
humanitarian or peacekeeping operations as defined in 10 U.S.C. 
2302(7), or contracts awarded by contracting officers in the conduct of 
emergency operations, such as responses to natural disasters or 
national or civil emergencies;
    (5) Purchases to support unusual or compelling needs of the type 
described in FAR 6.302-2; and
    (6) Cases where the Secretary of Defense determines that the 
requirement for using electronic means for submitting or processing 
payment requests and supporting documentation is unduly burdensome.
    (b) DoD officials receiving payment requests in electronic form 
must process the payment requests in electronic form. Any supporting 
documentation necessary for payment, such as receiving reports, 
contracts, contract modifications, and required certifications, also 
must be processed in electronic form.


232.7003  Procedures.

    (a) The accepted electronic forms for transmission are--
    (1) Web Invoicing System (see website--http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=https://ecweb.dfas.mil);
    (2) Wide Area WorkFlow Receipts and Acceptance (see website--
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=https://rmb.ogden.disa.mil); and
    (3) American National Standards Institute (ANSI) X.12 electronic 
data interchange (EDI) formats (see website--http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.x12.org for 
information on EDI formats; see website--http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.dfas.mil/ecedi for 
EDI implementation guides).
    (b) If the payment office and the contract administration office 
concur, the contracting officer may authorize a contractor to submit a 
payment request--
    (1) Using an electronic form other than those listed in paragraph 
(a) of this section; or
    (2) In other than electronic form if, after contract award, the 
contractor is unable to submit, or DoD is unable to receive, the 
payment request in electronic form.


232.7004  Contract clause.

    Except as provided in 232.7002(a), use the clause at 252.232-7XXX, 
Electronic Submission of Payment Requests, in solicitations and 
contracts.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

    3. Section 252.212-7001 is amended as follows:
    a. By revising the clause date to read ``(XXX 2002)''; and
    b. In paragraph (b) by adding, in numerical order, the entry ``___ 
252.232-7XXX Electronic Submission of Payment Requests (XXX 2002) (10 
U.S.C. 2227)''.
    4. Section 252.232-7XXX is added to read as follows:


252.232-7XXX  Electronic Submission of Payment Requests.

    As prescribed in 232.7004, use the following clause:
Electronic Submission of Payment Requests (XXX 2002)
    (a) Definitions. As used in this clause--
    (1) Contract financing payment and invoice payment have the 
meanings given in section 32.001 of the Federal Acquisition Regulation.
    (2) Electronic form means any automated system that transmits 
information electronically from the initiating system to all affected 
systems.
    (3) Payment request means any request for contract financing 
payment or invoice payment submitted by the Contractor under this 
contract.
    (b) Except as provided in paragraph (c) of this clause, the 
Contractor shall submit payment requests using one of the following 
electronic forms:
    (1) Web Invoicing System (WInS). Information regarding WInS is 
available on the Internet at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=https://ecweb.dfas.mil.
    (2) Wide Area WorkFlow Receipts and Acceptance (WAWF-RA). 
Information regarding WAWF-RA is available on the Internet at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=https://rmb.ogden.disa.mil.

[[Page 38059]]

    (3) American National Standards Institute (ANSI) X.12 electronic 
data interchange (EDI) formats.
    (i) Information regarding EDI formats is available on the Internet 
at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.x12.org.
    (ii) EDI implementation guides are available on the Internet at 
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.dfas.mil/ecedi.
    (4) Another electronic form authorized by the Contracting Officer.
    (c) If, after contract award, the Contractor is unable to submit a 
payment request in electronic form, or the Government is unable to 
receive a payment request in electronic form, the Contractor shall 
submit the payment request using a method mutually agreed to by the 
Contractor and the Contracting Officer.
    (d) In addition to the requirements of this clause, the Contractor 
shall meet the requirements of the appropriate payment clauses in this 
contract when submitting payment requests.

(End of clause)

[FR Doc. 02-13532 Filed 5-30-02; 8:45 am]
BILLING CODE 5001-08-P