[Federal Register Volume 71, Number 107 (Monday, June 5, 2006)]
[Rules and Regulations]
[Pages 32282-32284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-8665]
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ENVIRONMENTAL PROTECTION AGENCY
48 CFR Parts 1532 and 1552
[FRL-8179-6]
EPAAR Prescription and Clause--Simplified Acquisition Procedures
Financing
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: EPA is revising the EPA Acquisition Regulation (EPAAR)
Subparts 1532 and 1552 to implement a procedure for simplified
acquisition procedures financing. This EPAAR revision adds a
prescription and clause for contracting officers to use when approving
advance or interim payments on simplified acquisitions. The
prescription and clause apply to commercial item orders at or below the
simplified acquisition threshold. This action revises the EPAAR, but
does not impose any new requirements on Agency contractors. The
procedure allows contractors to invoice for advance and interim
payments in accordance with standard commercial practices when
authorized by the contracting officer and identified in the clause
payment schedule.
DATES: This final rule is effective on June 5, 2006.
ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-OARM-2006-0126. All documents in the docket are listed on the
http://www.regulations.gov Web site. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically through http://www.regulations.gov or in hard copy at the OEI Docket, EPA/DC, EPA
West, Room B102, 1301 Constitution Ave., NW., Washington, DC. The
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is (202) 566-1744, and the telephone number for the OEI
Docket is (202) 566-1752.
FOR FURTHER INFORMATION CONTACT: Tiffany Schermerhorn, Policy, Training
and Oversight Division, Office of Acquisition Management, Mail Code
3802R, Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460; telephone number: (202) 564-9902; fax number:
(202) 565-2475; e-mail address: [email protected].
SUPPLEMENTARY INFORMATION:
I. General Information
The EPAAR additions are necessary so that contracting officers may
provide simplified acquisition procedures financing that is appropriate
or customary in the commercial marketplace when purchasing commercial
items at or below the simplified acquisition threshold. This rule does
not impose any new requirements regarding submission of invoices or
vouchers since Agency contractors currently submit invoices or vouchers
for payment of orders. The EPAAR changes are consistent with the
Federal Acquisition Regulation. No public comments were received in
response to the proposed rule published on March 13, 2006. However, a
minor revision to the proposed language has been made in response to an
internal agency comment.
II. Statutory and Executive Order Reviews
A. Executive Order 12866
It has been determined that this rule is not a ``significant
regulatory action'' under the terms of Executive Order 12866 and is
therefore not subject to OMB review.
B. Paperwork Reduction Act
This action does not impose an information collection burden under
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.
This rule does not impose any new information collection or other
requirements on Agency contractors.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; (2) a small governmental jurisdiction that is a government of
a city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of today's proposed rule on
small entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. This final
rule will not impose any new requirements on small entities.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to State, local, and tribal governments, in
the aggregate, or to the private sector, of $100 million or more in any
one year. Before promulgating an EPA rule for which a written statement
is needed, section 205 of the UMRA generally requires EPA to identify
and consider a reasonable number of regulatory alternatives and adopt
the least costly, most cost-effective or least burdensome alternative
that achieves the objectives of the rule. The provisions of section 205
do not apply when they are inconsistent with applicable law. Moreover,
section 205 allows EPA to adopt an alternative other than the least
costly, most cost-effective or least burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before EPA establishes any regulatory
requirements that may significantly or uniquely affect small
governments, including tribal governments, it must have developed under
section 203 of the UMRA a small government agency plan. The plan must
provide for notifying potentially affected small governments, enabling
officials of affected small governments to have meaningful and timely
input in the development of EPA regulatory proposals with significant
Federal intergovernmental mandates, and informing, educating, and
advising
[[Page 32283]]
small governments on compliance with the regulatory requirements.
Today's rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, or tribal
governments or the private sector. The rule imposes no enforceable duty
on any State, local or tribal governments or the private sector. Thus,
today's rule is not subject to the requirements of sections 202 and 205
of the UMRA.
E. Executive Order 13132 (Federalism)
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government.''
This final rule does not have federalism implications. It will not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132. Thus, Executive Order 13132 does
not apply to this rule.
F. Executive Order 13175 (Consultation and Coordination With Indian
Tribal Governments)
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This final rule does not have
tribal implications, as specified in Executive Order 13175. It will not
have substantial direct effects on tribal governments, or on the
relationship between the Federal government and Indian tribes, as
specified in Executive Order 13175. The final rule amends acquisition
regulations that are administrative and procedural in nature. Thus,
Executive Order 13175 does not apply to this rule.
G. Executive Order 13045
Executive Order 13045: ``Protection of Children from Environmental
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies
to any rule that: (1) Is determined to be ``economically significant''
as defined under Executive Order 12866, and (2) concerns an
environmental health or safety risk that EPA has reason to believe may
have a disproportionate effect on children. If the regulatory action
meets both criteria, the Agency must evaluate the environmental health
or safety effects of the planned rule on children, and explain why the
planned regulation is preferable to other potentially effective and
reasonably feasible alternatives considered by the Agency.
This rule is not subject to Executive Order 13045 because it is not
an economically significant rule as defined by Executive Order 12866,
and because it does not involve decisions on environmental health or
safety risk.
H. Executive Order 13211 (Energy Effects)
This rule is not subject to Executive Order 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a
significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act of 1995
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. The NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
This rulemaking does not involve technical standards. Therefore,
EPA is not considering the use of any voluntary consensus standards.
EPA welcomes comments on this aspect of the rulemaking and,
specifically, invites the public to identify potentially-applicable
voluntary consensus standards and to explain why such standards should
be used in this regulation.
J. Submission to Congress and the General Accounting Office
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2). This rule will be effective on June 5, 2006.
List of Subjects in 48 CFR Parts 1532 and 1552
Government procurement.
Dated: May 24, 2006.
Judy S. Davis,
Director, Office of Acquisition Management.
0
For the reasons set forth in the Preamble, the Environmental Protection
Agency amends Chapter 15 of Title 48 Code of Federal Regulations, parts
1532 and 1552 as set forth below:
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1. The authority citation for 48 CFR parts 1532 and 1552 continues to
read as follows:
Authority: Section 205(c), 63 Stat. 390 as amended, 40 U.S.C.
486(c).
PART 1532--CONTRACT FINANCING
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2. Add 1532.003 to read as follows:
1532.003 Simplified acquisition procedures financing.
(a) Scope. This subpart provides for authorization of advance and
interim payments on commercial item orders not exceeding the simplified
acquisition threshold. Advance payments are payments that are made
prior to performance. Interim payments are payments that are made
during the order period according to a payment schedule.
(b) Procedures for micropurchases. Contracting officers may
authorize advance and interim payments on orders for commercial items
only at or below the micropurchase threshold.
(c) Procedures for purchases exceeding micropurchase threshold.
Contracting officers must secure approval at one level above the
contracting officer, on a case-by-case basis, for advance and interim
payments on orders for commercial items exceeding the micropurchase
threshold and not exceeding the simplified acquisition threshold. The
contracting officer shall submit a recommendation
[[Page 32284]]
for approval of financing terms, along with the supporting rationale
for the action, to one level above the contracting officer. Remote
simplified acquisition contracting officers (SACO) without one level
above contracting officers at their locations shall forward
recommendations through their OAM Advisors to secure one level above
approval.
(d) Supporting rationale. Regardless of dollar value, the
contracting officer shall document the file with supporting rationale
demonstrating that the purchase meets the conditions of FAR 32.202-
1(b)(1), (3) and (4).
(e) Administration. Regardless of dollar value, the contracting
officer is responsible for ensuring that supplies or services have been
delivered. The contracting officer shall document the file with
evidence of receipt of supplies or services throughout the order period
as appropriate to the acquisition.
(f) Clause. The contracting officer shall insert the clause at
1552.232-74, Payments--Simplified Acquisition Procedures Financing, in
solicitations and orders that will provide simplified acquisition
procedures financing.
PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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3. Add 1552.232-74 to read as follows:
1552.232-74 Payments--Simplified Acquisition Procedures Financing.
As prescribed in 1532.003, insert the following clause in
solicitations and orders that will provide simplified acquisition
procedures financing.
Payments--Simplified Acquisition Procedures Financing (JUN 2006)
Simplified acquisition procedures financing in the form of --------
---- [contracting officer insert advance (prior to performance) and/or
interim (according to payment schedule] payment(s)) will be provided
under this commercial item order in accordance with the payment
schedule below. If both advance and interim payments are to be made,
the payment schedule shown below will specify the type of payment
provided for each line item.
The Government shall pay the contractor as follows upon the
submission of invoices or vouchers approved by the project officer: --
---------------------- [insert payment schedule].
[FR Doc. E6-8665 Filed 6-2-06; 8:45 am]
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