[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Rules and Regulations]
[Pages 14240-14241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5478]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 232 and 252
RIN 0750-AF28
Defense Federal Acquisition Regulation Supplement; Electronic
Submission and Processing of Payment Requests (DFARS Case 2005-D009)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to update policy addressing
requirements for DoD contractors to submit payment requests in
electronic form. The rule clarifies the situations under which DoD will
grant exceptions to requirements for electronic submission of payment
requests.
EFFECTIVE DATE: March 27, 2007.
FOR FURTHER INFORMATION CONTACT: Mr. John McPherson, Defense
Acquisition Regulations System, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0296;
facsimile (703) 602-0350. Please cite DFARS Case 2005-D009.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends DFARS Subpart 232.70 and the corresponding
contract clause at 252.232-7003 to clarify the situations under which
DoD will grant exceptions to requirements for electronic submission of
payment requests.
DoD published a proposed rule at 71 FR 14149 on March 21, 2006. Two
sources submitted comments on the proposed rule. A discussion of the
comments is provided below.
1. Comment: One respondent recommended expansion of the DFARS text
that permits the administrative contracting officer to authorize
submission of a non-electronic payment request, to also provide this
authority to the procuring contracting officer. The respondent stated
that the expansion is necessary to identify authorized officials for
contracts that are not administered by the Defense Contract Management
Agency.
DoD Response: DoD agrees that this authority belongs to the
contracting officer administering the contract. However, there may be
several contracting officers providing administrative support for a
contract. Therefore, DoD has revised the rule to make this approval the
responsibility of the contracting officer administering the contract
for payment.
2. Comment: One respondent stated there should be a distinction
between the requirement for contractors to submit payment requests in
electronic form and the requirement for DoD procurement officials to
process supporting documents in electronic form.
DoD Response: It is DoD policy for all required documentation to be
submitted and processed in electronic form to facilitate the payment
process. DoD believes the DFARS rule implements this policy and has
made no related changes regarding this requirement in the final rule.
3. Comment: One respondent recommended limiting the alternative
payment request methods to conventional mail or facsimile. The
respondent pointed out that each new alternative method of submission
requires the establishment of business rules to properly monitor
payment requests and to ensure timely payment. In addition, submission
by methods such as e-mail will require the printing and scanning of
documents and will increase the workload of the payment office.
DoD Response: The final rule includes changes that limit the
alternative payment request methods to conventional mail or facsimile.
DoD recognizes that the Defense Finance and Accounting Service (DFAS)
has established procedures with adequate controls for the paper and
facsimile submission process to ensure prevention of duplicate payments
and to provide an adequate audit trail. E-mail submission is not viable
at this time, because DFAS presently does not have procedures in place
to process such submissions and to maintain sufficient process control.
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 certifies that this final rule will not 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 is designed to avoid any such impact by permitting
alternative means of requesting payment when submission of electronic
payment
[[Page 14241]]
requests would be unduly burdensome to a contractor.
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 232 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 232 and 252 are amended as follows:
0
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
0
2. Section 232.7002 is revised to read as follows:
232.7002 Policy.
(a) Contractors shall 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 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(8), 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;
(6) Cases in which DoD is unable to receive payment requests in
electronic form; or
(7) Cases in which the contracting officer administering the
contract for payment has determined, in writing, that electronic
submission would be unduly burdensome to the contractor.
(b) DoD officials receiving payment requests in electronic form
shall process the payment requests in electronic form. Any supporting
documentation necessary for payment, such as receiving reports,
contracts, contract modifications, and required certifications, also
shall be processed in electronic form. Scanned documents are acceptable
forms for processing supporting documentation.
(c) When payment requests will not be submitted in electronic
form--
(1) Payment requests shall be submitted by facsimile or
conventional mail. The contracting officer shall consult with the
payment office and the contract administration office regarding the
method of payment request to be used; and
(2) Section G of the contract shall specify the method of payment
request.
232.7003 [Amended]
0
3. Section 232.7003 is amended in paragraph (a)(3) by removing ``http://www.dod.mil/dfas/'' and adding in its place ``http://www.dod.mil/dfas/contractorpay/electroniccommerce.html''.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Section 252.232-7003 is amended as follows:
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a. By revising the clause date and paragraphs (b)(3)(ii) and (c);
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b. By redesignating paragraph (d) as paragraph (e); and
0
c. By adding a new paragraph (d) to read as follows:
252.232-7003 Electronic Submission of Payment Requests.
* * * * *
ELECTRONIC SUBMISSION OF PAYMENT REQUESTS (MAR 2007)
* * * * *
(b) * * *
(3) * * *
(ii) EDI implementation guides are available on the Internet at
http://www.dod.mil/dfas/contractorpay/electroniccommerce.html.
* * * * *
(c) The Contractor may submit a payment request in non-
electronic form only when--
(1) DoD is unable to receive a payment request in electronic
form; or
(2) 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.
(d) The Contractor shall submit any non-electronic payment
requests using the method or methods specified in Section G of the
contract.
* * * * *
[FR Doc. E7-5478 Filed 3-26-07; 8:45 am]
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