[Federal Register: June 25, 2004 (Volume 69, Number 122)]
[Proposed Rules]
[Page 35564-35566]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25jn04-32]
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DEPARTMENT OF DEFENSE
48 CFR Parts 204, 252, and Appendix F to Chapter 2
[DFARS Case 2003-D009]
Defense Federal Acquisition Regulation Supplement; Payment and
Billing Instructions
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 improve payment and billing
instructions in DoD contracts. This proposed rule is a result of a
transformation initiative undertaken by
[[Page 35565]]
DoD to dramatically change the purpose and content of the DFARS.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before August 24, 2004, to be considered
in the formation of the final rule.
ADDRESSES: Respondents may submit comments via the Internet at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm.
As an alternative, respondents may e-mail comments to: dfars@osd.mil. Please cite DFARS
Case 2003-D009 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: Mr. Thaddeus Godlewski, OUSD(AT&L)DPAP(DAR), IMD 3C132,
3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-
0350. Please cite DFARS Case 2003-D009.
At the end of the comment period, interested parties may view
public comments on the Internet at http://emissary.acq.osd.mil/dar/dfars.nsf
.
FOR FURTHER INFORMATION CONTACT: Mr. Thaddeus Godlewski, (703) 602-
2022.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Transformation is a major DoD initiative to dramatically
change the purpose and content of the DFARS. The objective is to
improve the efficiency and effectiveness of the acquisition process,
while allowing the acquisition workforce the flexibility to innovate.
The transformed DFARS will contain only requirements of law, DoD-wide
policies, delegations of FAR authorities, deviations from FAR
requirements, and policies/procedures that have a significant effect
beyond the internal operating procedures of DoD or a significant cost
or administrative impact on contractors or offerors. Additional
information on the DFARS Transformation initiative is available at
http://www.acq.osd.mil/dp/dars/transf.htm.
This proposed rule is a result of the DFARS Transformation
initiative. The proposed changes include--
Deletion of text at DFARS 204.201, 204.202, 204.7103-2,
204.7104-2, 204.7107, and 204.7108 addressing distribution of contracts
and modifications; numbering of contract line items, subline items, and
accounting classification references; and inclusion of payment
instructions in contracts. Text on these subjects will be relocated to
the new DFARS companion resource, Procedures, Guidance, and Information
(PGI). In addition, PGI will contain a menu of standard payment
instructions from which the contracting officer will make a selection
for inclusion in Section G of the contract. A proposed rule describing
the purpose and structure of PGI was published at 69 FR 8145 on
February 23, 2004. Draft PGI text related to this proposed rule is
available at http://www.acq.osd.mil/dpap/dfars/changes.htm.
Clarification of the definition of ``accounting
classification reference number'' at DFARS 204.7101.
Amendment of DFARS 204.7103-1 to add text addressing
contract type in the establishment of contract line items.
Amendment of DFARS 204.7106 to clarify that contract
modifications decreasing the amount obligated shall not be issued
unless sufficient unliquidated obligation exists or the purpose is to
recover monies owed to the government.
Addition of a clause addressing contract line item
information needed in contract financing and interim payment requests.
Amendment of Material Inspection and Receiving Report
instructions to address electronic submissions.
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 the rule
relates primarily to procedures that DoD contracting officers and
payment offices must follow in structuring contracts and disbursing
funds. 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 2003-D009.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the 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 204 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, DoD proposes to amend 48 CFR parts 204, 252, and
Appendix F to chapter 2 as follows:
1. The authority citation for 48 CFR parts 204, 252, and Appendix F
to subchapter I continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 204--ADMINISTRATIVE MATTERS
2. Section 204.201 is revised to read as follows:
204.201 Procedures.
Follow the procedures at PGI 204.201 for the distribution of
contracts and modifications.
204.202 [Removed]
3. Section 204.202 is removed.
4. Section 204.7101 is amended by revising the definition of
Accounting classification reference number (ACRN) to read as follows:
204.7101 Definitions.
Accounting classification reference number (ACRN) means any
combination of a two position alpha/numeric code used as a method of
relating the accounting classification citation to detailed line item
information contained in the schedule.
* * * * *
5. Section 204.7103-1 is amended by redesignating paragraphs (b)
through (d) as paragraphs (d) through (f), respectively; and by adding
new paragraphs (b) and (c) to read as follows:
204.7103-1 Criteria for establishing.
* * * * *
(b) All subline items and exhibit line items under one contract
line item shall be the same contract type as the contract line item.
(c) For a contract that contains both fixed-price and cost-
reimbursement line items, identify the contract type for each contract
line item in Section B, Supplies or Services and Prices/Costs, to
facilitate appropriate payment.
* * * * *
6. Section 204.7103-2 is revised to read as follows:
204.7103-2 Numbering procedures.
Follow the procedures at PGI 204.7103-2 for numbering contract line
items.
[[Page 35566]]
7. Section 204.7104-2 is revised to read as follows:
204.7104-2 Numbering procedures.
Follow the procedures at PGI 204.7104-2 for numbering contract
subline items.
8. Section 204.7106 is amended by adding paragraph (b)(3) to read
as follows:
204.7106 Contract modifications.
* * * * *
(b) * * *
(3) If the modification will decrease the amount obligated--
(i) There shall be coordination between the administrative and
procuring contracting offices before issuance of the modification; and
(ii) The contracting officer shall not issue the modification
unless sufficient unliquidated obligation exists or the purpose is to
recover monies owed to the Government.
9. Section 204.7107 is revised to read as follows:
204.7107 Contract accounting classification reference number (ACRN).
Follow the procedures at PGI 204.7107 for assigning ACRNs.
10. Sections 204.7108 and 204.7109 are added to read as follows:
204.7108 Payment instructions.
Follow the procedures at PGI 204.7108 for inclusion of payment
instructions in contracts.
204.7109 Contract clause.
Use the clause at 252.204-7XXX, Billing Instructions, if Section G
of the contract requires the contractor to identify the applicable
contract line item(s) when the contractor submits a request for--
(a) A contract financing payment; or
(b)(1) An interim payment under a cost-reimbursement contract for
services; and
(2) The contract includes the clause at FAR 52.232-25, Prompt
Payment, with its Alternate I.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
11. Section 252.204-7XXX is added to read as follows:
252.204-7XXX Billing Instructions.
As prescribed in 204.7109, use the following clause:
BILLING INSTRUCTIONS (XXX 2004)
When submitting a request for payment, the Contractor shall--
(a) Identify the contract line item(s) on the payment request
that best reflect contract work performance; and
(b) Separately identify a payment amount for each contract line
item that is included in the payment request.
(End of clause)
Appendix F--Material Inspection and Receiving Report
12. Appendix F to Chapter 2 is amended in Part 3 by revising
section F-306 to read as follows:
F-306 Invoice instructions.
(a) Contractors shall submit payment requests in electronic form,
unless an exception in 232.7002 applies. Contractor submission of the
material inspection and receiving information required by this appendix
by using the Wide Area WorkFlow-Receipt and Acceptance (WAWF-RA)
electronic form (see paragraph (b)(1) of the clause at 252.232-7003)
fulfills the requirement for an MIRR.
(b) If the contracting officer authorizes the contractor to submit
an invoice in paper form, the Government encourages, but does not
require, the contractor to use the MIRR as an invoice, in lieu of a
commercial form. If commercial forms are used, identify the related
MIRR shipment number(s) on the form. If using the MIRR as an invoice,
prepare the MIRR and forward the required number of copies to the
payment office as follows:
(1) Complete Blocks 5, 6, 19, and 20. Block 6 shall contain the
invoice number and date. Column 20 shall be totaled.
(2) Mark in letters approximately one inch high, first copy:
``ORIGINAL INVOICE, for all invoice submissions; and three copies:
``INVOICE COPY,'' when the payment office requires four copies.
Questions regarding the appropriate number of copies (i.e., one or
four) should be directed to the applicable payment office.
(3) Forward the appropriate number of copies to the payment office
(Block 12 address), except when acceptance is at destination and a Navy
finance office will make payment, forward to destination.
(4) Be sure to separate the copies of the MIRR used as an invoice
from the copies of the MIRR used as a receiving report.
[FR Doc. 04-14335 Filed 6-24-04; 8:45 am]
BILLING CODE 5001-08-P