[Federal Register: August 14, 2007 (Volume 72, Number 156)]
[Proposed Rules]               
[Page 45405-45407]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Defense Acquisition Regulations System

48 CFR Parts 232 and 252

RIN 0750-AF63

Defense Federal Acquisition Regulation Supplement; Mandatory Use 
of Wide Area WorkFlow (DFARS Case 2006-D049)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require use of the Wide Area WorkFlow-
Receipt and Acceptance (WAWF-RA) electronic system for submitting and 
processing payment requests under DoD contracts. DoD-wide use of WAWF-
RA will increase the efficiency of the payment process.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 15, 2007, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2006-D049, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
     E-mail: dfars@osd.mil. Include DFARS Case 2006-D049 in the 
subject line of the message.
     Fax: (703) 602-7887.

[[Page 45406]]

     Mail: Defense Acquisition Regulations System, Attn: Mr. 
John McPherson, OUSD (AT&L) DPAP (CPF), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
    Comments received generally will be posted without change to http://www.regulations.gov
, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Mr. John McPherson, (703) 602-0296.


A. Background

    This proposed rule amends DFARS Subpart 232.70, and the contract 
clause at DFARS 252.232-7003, to require use of the WAWF-RA electronic 
system for submission and processing of payment requests under DoD 
contracts. DFARS Subpart 232.70 presently identifies three accepted 
electronic forms of transmitting payment requests under DoD contracts. 
Those are (1) American National Standards Institute (ANSI) X.12 
Electronic Data Interchange (EDI); (2) Web Invoicing System; and (3) 
WAWF-RA. The proposed rule will still allow a contractor to submit a 
payment request through an electronic means other than WAWF-RA, or in a 
non-electronic format, if authorized by the contracting officer. In 
addition, the proposed rule will allow contractors to submit ANSI X.12 
EDI transactions through WAWF-RA.
    The proposed changes will reduce the problems created by DoD's 
nonintegrated financial systems, by facilitating the electronic 
transmission of payment documents and related data. WAWF-RA, when fully 
implemented and utilized, will eliminate paper documents, eliminate 
redundant data entry, improve data accuracy, reduce the number of lost 
or misplaced documents, and ultimately, result in more timely payments 
to contractors.
    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 has prepared an initial regulatory flexibility analysis 
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained 
from the point of contact specified herein. The analysis is summarized 
as follows:
    The objective of the proposed rule is to fully automate the payment 
process, including receiving reports, to significantly improve the 
timeliness of payments and to reduce DoD's interest charges for late 
payments. The proposed rule continues DoD's implementation of the 
electronic invoicing requirements of 10 U.S.C. 2227, as added by 
Section 1008 of the National Defense Authorization Act for Fiscal Year 
2001 (Pub. L. 106-398).
    American National Standards Institute (ANSI) X.12 Electronic Data 
Interchange (EDI) and Web Invoicing System (WInS) cannot process all 
DoD payment request types, nor can they process receiving reports. In 
addition, EDI and WInS information cannot be made available to all 
interested Government offices and organizations. WAWF-RA is the only 
DoD system that can process all payment request types as well as 
receiving reports. WAWF-RA keeps historical files that are readily 
available for both contractor and Government use. In addition, the use 
of WAWF-RA has contributed significantly to improving the timeliness of 
payments and to DoD's goal of reducing interest charges for late 
    The proposed rule changes the electronic systems available for 
submitting invoices to DoD. Approximately 1,000 small entities will be 
required to switch from the existing WInS to the WAWF-RA system, used 
by over 20,000 small entities. Both systems involve submission of 
invoices through the World Wide Web. Approximately 1 hour is needed to 
learn the new system. No reporting, recordkeeping, or compliance 
records will be required from small entities. All such records will be 
generated by DoD as a by-product of the use of the required systems.
    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 

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the proposed 
rule does not impose any 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 232 and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

    Therefore, DoD proposes to amend 48 CFR parts 232 and 252 as 
    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.


    2. Section 232.7002 is amended in paragraph (b) by revising the 
last sentence to read as follows:

232.7002  Policy.

* * * * *
    (b) * * * Scanned documents are acceptable for processing 
supporting documentation other than receiving reports and other forms 
of acceptance.
* * * * *
    3. Section 232.7003 is revised to read as follows:

232.7003  Procedures.

    (a) The accepted electronic form for submission of payment requests 
is Wide Area WorkFlow-Receipt and Acceptance (see Web site--http://wawf.eb.mil/

    (b) If the payment office and the contract administration office 
concur, the contracting officer may authorize a contractor to submit a 
payment request using an electronic form other than Wide Area WorkFlow-
Receipt and Acceptance. However, with this authorization, the 
contractor and the contracting officer shall agree to a plan, which 
shall include a timeline, specifying when the contractor will transfer 
to Wide Area WorkFlow-Receipt and Acceptance.


    4. Section 252.232-7003 is amended as follows:
    a. By revising the clause date;
    b. In paragraph (a)(2), by revising the last sentence; and
    c. By revising paragraphs (b) and (c) to read as follows:

252.232-7003  Electronic Submission of Payment Requests.

* * * * *
    (a) * * *
    (2) * * * However, scanned documents are acceptable when they are

[[Page 45407]]

part of a submission of a payment request made using Wide Area 
WorkFlow-Receipt and Acceptance (WAWF-RA) or another electronic form 
authorized by the Contracting Officer.
* * * * *
    (b) Except as provided in paragraph (c) of this clause, the 
Contractor shall submit payment requests using WAWF-RA, in one of the 
following electronic formats that WAWF-RA accepts: Electronic Data 
Interchange, Secure File Transfer Protocol, or World Wide Web input. 
Information regarding WAWF-RA is available on the Internet at https://wawf.eb.mil/

    (c) The Contractor may submit a payment request using other than 
WAWF-RA only when--
    (1) The Contracting Officer authorizes use of another electronic 
form. With such an authorization, the Contractor and the Contracting 
Officer shall agree to a plan, which shall include a timeline, 
specifying when the Contractor will transfer to Wide Area WorkFlow-
Receipt and Acceptance;
    (2) DoD is unable to receive a payment request in electronic form; 
    (3) The Contracting Officer administering the contract for payment 
has determined, in writing, that electronic submission would be unduly 
burdensome to the Contractor. In such cases, the Contractor shall 
include a copy of the Contracting Officer's determination with each 
request for payment.
* * * * *
[FR Doc. E7-15928 Filed 8-13-07; 8:45 am]