Defense Federal Acquisition Regulation Supplement; Contract Financing, 23827-23829 [05-9004]
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Federal Register / Vol. 70, No. 86 / Thursday, May 5, 2005 / Proposed Rules
proposed DFARS changes permit DoD
contracting activities to assign an
additional identification number to an
existing contract by issuing a separate
‘‘continued’’ contract, when continued
performance under the existing contract
number is not practical for
administrative reasons. The continued
contract would incorporate all prices,
terms, and conditions of the predecessor
contract. Use of this procedure is
expected to be limited, but will help to
simplify administration, payment, and
closeout of lengthy, complex contracts;
and will help in situations where a
contracting activity has exhausted its
assigned series of identification
numbers for orders placed against
another activity’s contract.
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 proposed change is
administrative. A continued contract
does not constitute a new procurement
and will incorporate all prices, terms,
and conditions of the predecessor
contract. 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 subpart
in accordance with 5 U.S.C. 610. Such
comments should be submitted
separately and should cite DFARS Case
2003–D052.
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 Part 204
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD proposes to amend 48
CFR Part 204 as follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Section 204.7001 is revised to read
as follows:
204.7001
Policy.
(a) Use the uniform PII numbering
system prescribed by this subpart for the
solicitation/contract instruments
described in 204.7003 and 204.7004.
(b) Retain the basic PII number
unchanged for the life of the instrument
unless the conditions in paragraph (c) of
this section exist.
(c)(1) If continued performance under
a contract number is not possible or is
not in the Government’s best interest
solely for administrative reasons (e.g.,
when the supplementary PII serial
numbering system is exhausted or for
lengthy major systems contracts with
multiple options), the contracting officer
may assign an additional PII number by
issuing a separate continued contract to
permit continued contract performance.
(2) A continued contract—
(i) Does not constitute a new
procurement;
(ii) Incorporates all prices, terms, and
conditions of the predecessor contract
effective at the time of issuance of the
continued contract;
(iii) Operates as a separate contract
independent of the predecessor contract
once issued; and
(iv) Shall not evade competition,
expand the scope of work, or extend the
period of performance beyond that of
the predecessor contract.
(3) When issuing a continued
contract, the contracting officer shall—
(i) Issue an administrative
modification to the predecessor contract
to clearly state that—
(A) Any future awards provided for
under the terms of the predecessor
contract (e.g., issuance of orders or
exercise of options) will be
accomplished under the continued
contract; and
(B) Supplies and services already
acquired under the predecessor contract
shall remain solely under that contract
for purposes of Government inspection,
acceptance, payment, and closeout; and
(ii) Follow the procedures at PGI
204.7001(c).
[FR Doc. 05–9006 Filed 5–4–05; 8:45 am]
PART 204—ADMINISTRATIVE
MATTERS
BILLING CODE 5001–08–P
1. The authority citation for 48 CFR
Part 204 continues to read as follows:
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23827
DEPARTMENT OF DEFENSE
48 CFR Part 232
[DFARS Case 2003–D043]
Defense Federal Acquisition
Regulation Supplement; Contract
Financing
Department of Defense (DoD).
Proposed rule with request for
comments.
AGENCY:
ACTION:
SUMMARY: DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
update text pertaining to contract
financing. This proposed rule is a result
of a transformation initiative undertaken
by 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 July
5, 2005, to be considered in the
formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2003–D043,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Defense Acquisition Regulations
Web Site: https://emissary.acq.osd.mil/
dar/dfars.nsf/pubcomm. Follow the
instructions for submitting comments.
• E-mail: dfars@osd.mil. Include
DFARS Case 2003-D043 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations Council, Attn: Mr. Bill Sain,
OUSD(AT&L)DPAP(DAR), IMD 3C132,
3062 Defense Pentagon, Washington, DC
20301–3062.
• Hand Delivery/Courier: Defense
Acquisition Regulations Council,
Crystal Square 4, Suite 200A, 241 18th
Street, Arlington, VA 22202–3402.
All comments received will be posted
to https://emissary.acq.osd.mil/dar/
dfars.nsf.
FOR FURTHER INFORMATION CONTACT:
Mr.
Bill Sain, (703) 602–0293.
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, DoDwide policies, delegations of FAR
authorities, deviations from FAR
E:\FR\FM\05MYP1.SGM
05MYP1
23828
Federal Register / Vol. 70, No. 86 / Thursday, May 5, 2005 / Proposed Rules
requirements, and policies/procedures
that have a significant impact 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 https://www.acq.osd.mil/
dpap/dfars/transf.htm.
This proposed rule is a result of the
DFARS Transformation initiative. The
proposed DFARS changes include—
• Relocation of text addressing
general contract financing payment
issues from 232.906 to 232.007.
• Deletion of unnecessary text at
232.071 on the composition and
responsibilities of the DoD Contract
Finance Committee, and deletion of
references to the Committee at
232.070(a) and 232.617(a).
• Deletion of text at 232.108 on
financial consultation, and deletion of
text at 232.207 on specifying amounts to
be charged to foreign military sales
accounts in approvals of financing
requests. These issues are adequately
addressed in the FAR.
• Deletion of text at 232.206(d) on
instructions for distribution of financing
payments to multiple appropriations
accounts. Text on this subject was
proposed for inclusion in the new
DFARS companion resource,
Procedures, Guidance, and Information
(PGI), in the proposed rule published at
69 FR 35564 on June 25, 2004, under
DFARS Case 2003–D009, Payment and
Billing Instructions.
• Amendment of 232.404(a)(9) to
increase, from $500 to $2,500, the dollar
value at or below which the
requirements of FAR Subpart 32.4,
Advance Payments for Non-Commercial
Items, do not apply to high school and
college publications for military
recruitment efforts.
• Clarification of text at 232.501–3(b)
on limitation of the Government’s
liability when the contract price exceeds
the funds obligated under the contract.
• Deletion of unnecessary text at
232.605(b) regarding integrated
accounting at DoD installations.
• Relocation of text on payment due
dates, from 232.905(1) and (2), to
232.904 and 232.906, respectively.
• Deletion of unnecessary text at
232.905(f)(6) on electronic notification
to the payment office of Government
acceptance and approval. Electronic
submission and processing of payment
requests is addressed in Subpart 232.70.
• Addition of text at 232.906(a)(i) to
address the requirement for contracting
officers to insert the standard due date
for interim payments on costreimbursement contracts for services.
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12:46 May 04, 2005
Jkt 205001
• Deletion of unnecessary text at
232.1007 on specifying amounts to be
charged to foreign military sales
accounts.
• Deletion of text at DFARS 232.1108
on mandatory use of the
Governmentwide commercial purchase
card. This issue is addressed in 213.270.
• Deletion of informational and
procedural text at 232.070(c), 232.409–
1, 232.410, 232.501–2, 232.606, 232.610,
232.670, and 232.671. This text will be
relocated to the new DFARS companion
resource, Procedures, Guidance, and
Information (PGI), available at https://
www.acq.osd.mil/dpap/dars/pgi.
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 clarifies existing
DFARS text or provides guidance for
contracting officers. 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-D043.
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 Part 232
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
possible. Generally, the contracting
officer shall insert the standard due
dates of 7 days for progress payments,
and 14 days for performance-based
payments and interim payments on
cost-type contracts, in the appropriate
paragraphs of the respective payment
clauses. However, for interim payments
on cost-reimbursement contracts for
services, see 232.906(a)(i).
(b) The contracting officer should
coordinate contract financing payment
terms with offices that will be involved
in the payment process to ensure that
specified terms can be met. Where
justified, the contracting officer may
insert a due date greater than, but not
less than, the standard. In determining
payment terms, consider—
(i) Geographical separation;
(ii) Workload;
(iii) Contractor ability to submit a
proper request; and
(iv) Other factors that could affect
timing of payment.
3. Section 232.070 is amended by
revising paragraphs (a) and (c) to read as
follows:
232.070
Responsibilities.
(a) The Director of Defense
Procurement and Acquisition Policy,
Office of the Under Secretary of Defense
(Acquisition, Technology, and Logistics)
(OUSD(AT&L)DPAP) is responsible for
ensuring uniform administration of DoD
contract financing, including DoD
contract financing policies and
important related procedures. Agency
discretion under FAR Part 32 is at the
DoD level and is not delegated to the
departments and agencies. Proposals by
the departments and agencies, to
exercise agency discretion, shall be
submitted to OUSD(AT&L)DPAP.
*
*
*
*
*
(c) See PGI 232.070(c) for information
on department/agency contract
financing offices.
232.071
[Removed and Reserved]
Therefore, 48 CFR part 232 is
proposed to be amended as follows:
4. Section 232.071 is removed and
reserved.
PART 232—CONTRACT FINANCING
232.108
[Removed]
5. Section 232.108 is removed.
1. The authority citation for 48 CFR
part 232 continues to read as follows:
232.206
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
2. Section 232.007 is added to read as
follows:
6. Section 232.206 is amended by
removing paragraph (d).
232.207
232.007
Contract financing payments.
(a) DoD policy is to make contract
financing payments as quickly as
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[Amended]
[Removed]
7. Section 232.207 is removed.
8. The heading of Subpart 232.4 is
revised read as follows:
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23829
Federal Register / Vol. 70, No. 86 / Thursday, May 5, 2005 / Proposed Rules
Subpart 232.4—Advance Payments for
Non-Commercial Items
232.404
[Amended]
9. Section 232.404 is amended in
paragraph (a)(9) by removing ‘‘$500’’
and adding in its place ‘‘$2,500.’’
10. Section 232.409–1 is revised to
read as follows:
§ 232.409–1
approval.
Recommendation for
§ 232.410 Findings, determination, and
authorization.
If an advance payment procedure is
used without a special bank account,
follow the procedures at PGI 232.410.
12. Section 232.501–2 is revised to
read as follows:
Unusual progress payments.
Follow the procedures at PGI
232.501–2 for approval of unusual
progress payments.
13. Section 232.501–3 is amended by
revising paragraph (b) introductory text
to read as follows:
232.501–3
Contract price.
(b) The contracting officer may
approve progress payments when the
contract price exceeds the funds
obligated under the contract, provided
the contract limits the Government’s
liability to the lesser of—
*
*
*
*
*
232.503–15
[Amended]
14. Section 232.503–15 is amended in
paragraph (d) introductory text, in the
first sentence, by removing ‘‘252.242–
7004(f)(7)’’ and adding in its place
‘‘252.242–7004(e)(7)’.
232.605
[Amended]
15. Section 232.605 is amended in
paragraph (b) by removing the second
sentence.
16. Section 232.606 is revised to read
as follows:
232.606
Debt determination and collection.
When transferring a case to the
contract financing office, follow the
procedures at PGI 232.606.
17. Section 232.610 is revised to read
as follows:
232.610
debt.
Demand for payment of contract
When issuing a demand for payment
of a contract debt, follow the procedures
at PGI 232.610.
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12:46 May 04, 2005
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[Amended]
18. Section 232.616 is amended by
removing ‘‘(232.108(1))’’ and adding in
its place ‘‘(see 232.070(c))’.
19. Section 232.617 is revised to read
as follows:
232.617
Follow the procedures at PGI
232.409–1 for preparation of the
documents required by FAR 32.409–1(e)
and (f).
11. Section 232.410 is revised to read
as follows:
§ 232.501–2
232.616
Contract clause.
(a) The Director of Defense
Procurement and Acquisition Policy,
Office of the Under Secretary of Defense
(Acquisition, Technology, and
Logistics), may exempt the contracts in
FAR 32.617(a)(2) through (5) and other
contracts, in exceptional circumstances,
from the administrative interest charges
required by this subpart.
(7) Other exceptions are—
(A) Contracts for instructions of
military or ROTC personnel at civilian
schools, colleges, and universities;
(B) Basic agreements with telephone
companies for communications services
and facilities, and purchases under such
agreements; and
(C) Transportation contracts with
common carriers for common carrier
services.
20. Section 232.670 is revised to read
as follows:
232.670 Transfer of responsibility for debt
collection.
Follow the procedures at PGI 232.670
for transferring responsibility for debt
collection.
21. Section 232.671 is revised to read
as follows:
232.671
Bankruptcy reporting.
Follow the procedures at PGI 232.671
for bankruptcy reporting.
22. Section 232.903 is revised to read
as follows:
232.903
Government offices responsible for
acceptance or approval and for
payment. Reasons for specifying a
longer period include but are not
limited to: the nature of the work or
supplies or services, inspection or
testing requirements, shipping and
acceptance terms, and resources
available at the acceptance activity. A
constructive acceptance period of less
than the cited 7 or 14 days is not
authorized.
232.905
[Removed]
24. Section 232.905 is removed.
25. Section 232.906 is revised to read
as follows:
232.906
Making payments.
(a)(i) Generally, the contracting officer
shall insert the standard due date of 14
days for interim payments on costreimbursement contracts for services in
the clause at FAR 52.232–25, Prompt
Payment, when using the clause with its
Alternate I.
(ii) The restrictions of FAR 32.906
prohibiting early payment do not apply
to invoice payments made to small
disadvantaged business concerns.
Contractors shall not, however, be
entitled to interest penalties if invoice
payments are not made before the
normal payment due dates established
in the contract.
232.1007 and 232.1108
[Removed]
26. Sections 232.1007 and 232.1108
are removed.
[FR Doc. 05–9004 Filed 5–4–05; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF COMMERCE
Responsibilities.
DoD policy is to assist small
disadvantaged business concerns by
paying them as quickly as possible after
invoices are received and before normal
payment due dates established in the
contract (see 232.906(a)).
23. Section 232.904 is added to read
as follows:
National Oceanic and Atmospheric
Administration
232.904
Pacific Halibut Fisheries; Fisheries of
the Exclusive Economic Zone Off
Alaska; Individual Fishing Quota
Program; Community Development
Quota Program
Determining payment due dates.
(d) In most cases, Government
acceptance or approval can occur within
the seven day constructive acceptance
period specified in the FAR Prompt
Payment clauses. Government payment
of construction progress payments can,
in most cases, be made within the 14
day period allowed by the Prompt
Payment for Construction Contracts
clause. While the contracting officer
may specify a longer period because the
period specified in the contract is not
reasonable or practical, such change
should be coordinated with the
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50 CFR Part 679
[Docket No. 050421110–5110–01; I.D.
041505F]
RIN 0648–AT03
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
AGENCY:
SUMMARY: NMFS proposes an
amendment to the Pacific halibut
regulations for waters in and off Alaska.
E:\FR\FM\05MYP1.SGM
05MYP1
Agencies
[Federal Register Volume 70, Number 86 (Thursday, May 5, 2005)]
[Proposed Rules]
[Pages 23827-23829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9004]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Part 232
[DFARS Case 2003-D043]
Defense Federal Acquisition Regulation Supplement; Contract
Financing
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to update text pertaining to contract
financing. This proposed rule is a result of a transformation
initiative undertaken by 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 July 5, 2005, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D043,
using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Defense Acquisition Regulations Web Site: https://
emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for
submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2003-D043 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Mr.
Bill Sain, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
All comments received will be posted to https://
emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Mr. Bill Sain, (703) 602-0293.
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
[[Page 23828]]
requirements, and policies/procedures that have a significant impact
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
https://www.acq.osd.mil/dpap/dfars/transf.htm.
This proposed rule is a result of the DFARS Transformation
initiative. The proposed DFARS changes include--
Relocation of text addressing general contract financing
payment issues from 232.906 to 232.007.
Deletion of unnecessary text at 232.071 on the composition
and responsibilities of the DoD Contract Finance Committee, and
deletion of references to the Committee at 232.070(a) and 232.617(a).
Deletion of text at 232.108 on financial consultation, and
deletion of text at 232.207 on specifying amounts to be charged to
foreign military sales accounts in approvals of financing requests.
These issues are adequately addressed in the FAR.
Deletion of text at 232.206(d) on instructions for
distribution of financing payments to multiple appropriations accounts.
Text on this subject was proposed for inclusion in the new DFARS
companion resource, Procedures, Guidance, and Information (PGI), in the
proposed rule published at 69 FR 35564 on June 25, 2004, under DFARS
Case 2003-D009, Payment and Billing Instructions.
Amendment of 232.404(a)(9) to increase, from $500 to
$2,500, the dollar value at or below which the requirements of FAR
Subpart 32.4, Advance Payments for Non-Commercial Items, do not apply
to high school and college publications for military recruitment
efforts.
Clarification of text at 232.501-3(b) on limitation of the
Government's liability when the contract price exceeds the funds
obligated under the contract.
Deletion of unnecessary text at 232.605(b) regarding
integrated accounting at DoD installations.
Relocation of text on payment due dates, from 232.905(1)
and (2), to 232.904 and 232.906, respectively.
Deletion of unnecessary text at 232.905(f)(6) on
electronic notification to the payment office of Government acceptance
and approval. Electronic submission and processing of payment requests
is addressed in Subpart 232.70.
Addition of text at 232.906(a)(i) to address the
requirement for contracting officers to insert the standard due date
for interim payments on cost-reimbursement contracts for services.
Deletion of unnecessary text at 232.1007 on specifying
amounts to be charged to foreign military sales accounts.
Deletion of text at DFARS 232.1108 on mandatory use of the
Governmentwide commercial purchase card. This issue is addressed in
213.270.
Deletion of informational and procedural text at
232.070(c), 232.409-1, 232.410, 232.501-2, 232.606, 232.610, 232.670,
and 232.671. This text will be relocated to the new DFARS companion
resource, Procedures, Guidance, and Information (PGI), available at
https://www.acq.osd.mil/dpap/dars/pgi.
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
clarifies existing DFARS text or provides guidance for contracting
officers. 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-D043.
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 Part 232
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 232 is proposed to be amended as follows:
PART 232--CONTRACT FINANCING
1. The authority citation for 48 CFR part 232 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
2. Section 232.007 is added to read as follows:
232.007 Contract financing payments.
(a) DoD policy is to make contract financing payments as quickly as
possible. Generally, the contracting officer shall insert the standard
due dates of 7 days for progress payments, and 14 days for performance-
based payments and interim payments on cost-type contracts, in the
appropriate paragraphs of the respective payment clauses. However, for
interim payments on cost-reimbursement contracts for services, see
232.906(a)(i).
(b) The contracting officer should coordinate contract financing
payment terms with offices that will be involved in the payment process
to ensure that specified terms can be met. Where justified, the
contracting officer may insert a due date greater than, but not less
than, the standard. In determining payment terms, consider--
(i) Geographical separation;
(ii) Workload;
(iii) Contractor ability to submit a proper request; and
(iv) Other factors that could affect timing of payment.
3. Section 232.070 is amended by revising paragraphs (a) and (c) to
read as follows:
232.070 Responsibilities.
(a) The Director of Defense Procurement and Acquisition Policy,
Office of the Under Secretary of Defense (Acquisition, Technology, and
Logistics) (OUSD(AT&L)DPAP) is responsible for ensuring uniform
administration of DoD contract financing, including DoD contract
financing policies and important related procedures. Agency discretion
under FAR Part 32 is at the DoD level and is not delegated to the
departments and agencies. Proposals by the departments and agencies, to
exercise agency discretion, shall be submitted to OUSD(AT&L)DPAP.
* * * * *
(c) See PGI 232.070(c) for information on department/agency
contract financing offices.
232.071 [Removed and Reserved]
4. Section 232.071 is removed and reserved.
232.108 [Removed]
5. Section 232.108 is removed.
232.206 [Amended]
6. Section 232.206 is amended by removing paragraph (d).
232.207 [Removed]
7. Section 232.207 is removed.
8. The heading of Subpart 232.4 is revised read as follows:
[[Page 23829]]
Subpart 232.4--Advance Payments for Non-Commercial Items
232.404 [Amended]
9. Section 232.404 is amended in paragraph (a)(9) by removing
``$500'' and adding in its place ``$2,500.''
10. Section 232.409-1 is revised to read as follows:
Sec. 232.409-1 Recommendation for approval.
Follow the procedures at PGI 232.409-1 for preparation of the
documents required by FAR 32.409-1(e) and (f).
11. Section 232.410 is revised to read as follows:
Sec. 232.410 Findings, determination, and authorization.
If an advance payment procedure is used without a special bank
account, follow the procedures at PGI 232.410.
12. Section 232.501-2 is revised to read as follows:
Sec. 232.501-2 Unusual progress payments.
Follow the procedures at PGI 232.501-2 for approval of unusual
progress payments.
13. Section 232.501-3 is amended by revising paragraph (b)
introductory text to read as follows:
232.501-3 Contract price.
(b) The contracting officer may approve progress payments when the
contract price exceeds the funds obligated under the contract, provided
the contract limits the Government's liability to the lesser of--
* * * * *
232.503-15 [Amended]
14. Section 232.503-15 is amended in paragraph (d) introductory
text, in the first sentence, by removing ``252.242-7004(f)(7)'' and
adding in its place ``252.242-7004(e)(7)'.
232.605 [Amended]
15. Section 232.605 is amended in paragraph (b) by removing the
second sentence.
16. Section 232.606 is revised to read as follows:
232.606 Debt determination and collection.
When transferring a case to the contract financing office, follow
the procedures at PGI 232.606.
17. Section 232.610 is revised to read as follows:
232.610 Demand for payment of contract debt.
When issuing a demand for payment of a contract debt, follow the
procedures at PGI 232.610.
232.616 [Amended]
18. Section 232.616 is amended by removing ``(232.108(1))'' and
adding in its place ``(see 232.070(c))'.
19. Section 232.617 is revised to read as follows:
232.617 Contract clause.
(a) The Director of Defense Procurement and Acquisition Policy,
Office of the Under Secretary of Defense (Acquisition, Technology, and
Logistics), may exempt the contracts in FAR 32.617(a)(2) through (5)
and other contracts, in exceptional circumstances, from the
administrative interest charges required by this subpart.
(7) Other exceptions are--
(A) Contracts for instructions of military or ROTC personnel at
civilian schools, colleges, and universities;
(B) Basic agreements with telephone companies for communications
services and facilities, and purchases under such agreements; and
(C) Transportation contracts with common carriers for common
carrier services.
20. Section 232.670 is revised to read as follows:
232.670 Transfer of responsibility for debt collection.
Follow the procedures at PGI 232.670 for transferring
responsibility for debt collection.
21. Section 232.671 is revised to read as follows:
232.671 Bankruptcy reporting.
Follow the procedures at PGI 232.671 for bankruptcy reporting.
22. Section 232.903 is revised to read as follows:
232.903 Responsibilities.
DoD policy is to assist small disadvantaged business concerns by
paying them as quickly as possible after invoices are received and
before normal payment due dates established in the contract (see
232.906(a)).
23. Section 232.904 is added to read as follows:
232.904 Determining payment due dates.
(d) In most cases, Government acceptance or approval can occur
within the seven day constructive acceptance period specified in the
FAR Prompt Payment clauses. Government payment of construction progress
payments can, in most cases, be made within the 14 day period allowed
by the Prompt Payment for Construction Contracts clause. While the
contracting officer may specify a longer period because the period
specified in the contract is not reasonable or practical, such change
should be coordinated with the Government offices responsible for
acceptance or approval and for payment. Reasons for specifying a longer
period include but are not limited to: the nature of the work or
supplies or services, inspection or testing requirements, shipping and
acceptance terms, and resources available at the acceptance activity. A
constructive acceptance period of less than the cited 7 or 14 days is
not authorized.
232.905 [Removed]
24. Section 232.905 is removed.
25. Section 232.906 is revised to read as follows:
232.906 Making payments.
(a)(i) Generally, the contracting officer shall insert the standard
due date of 14 days for interim payments on cost-reimbursement
contracts for services in the clause at FAR 52.232-25, Prompt Payment,
when using the clause with its Alternate I.
(ii) The restrictions of FAR 32.906 prohibiting early payment do
not apply to invoice payments made to small disadvantaged business
concerns. Contractors shall not, however, be entitled to interest
penalties if invoice payments are not made before the normal payment
due dates established in the contract.
232.1007 and 232.1108 [Removed]
26. Sections 232.1007 and 232.1108 are removed.
[FR Doc. 05-9004 Filed 5-4-05; 8:45 am]
BILLING CODE 5001-08-P