[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]
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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.
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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:
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OMB control
FAR clause No. Clause title No. Expiration date
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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.
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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