Federal Acquisition Regulation; FAR Case 2004-031, Fast Payment Procedures, 20308-20309 [06-3686]

Download as PDF 20308 Federal Register / Vol. 71, No. 75 / Wednesday, April 19, 2006 / Rules and Regulations BUY AMERICAN ACT—CONSTRUCTION MATERIALS UNDER TRADE AGREEMENTS ‘‘(APR 2006)’’ * * * * (c) * * * (3) * * * List in paragraph (b)(3) of the clause all foreign construction material excepted from the requirements of the Buy American Act, unless the excepted foreign construction material is from a designated country other than Mexico. * * * * * PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES Alternate I ‘‘(APR 2006)’’. * * * Australian, Chilean, or Moroccan construction material means a construction material that— (1) Is wholly the growth, product, or manufacture of Australia, Chile, or Morocco; or (2) In the case of a construction material that consists in whole or in part of materials from another country, has been substantially transformed in Australia, Chile, or Morocco into a new and different construction material distinct from the materials from which it was transformed. the current practice. Instead, they will be paid using either fast payment or normal payment procedures. In addition, the revision deletes the requirement for marking invoices ‘‘No Receiving Report Prepared.’’ DATES: Effective Date: May 19, 2006. FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Mr. Jeremy Olson, Procurement Analyst, at (202) 501–3221. Please cite FAC 2005– 09, FAR case 2004–031. For information pertaining to status or publication schedules, contact the FAR Secretariat at (202) 501–4755. SUPPLEMENTARY INFORMATION: * A. Background 6. Amend section 25.1102 by revising the second sentence of paragraph (c)(3) to read as follows: I 25.1102 * Acquisition of construction. * 52.212–5 7. Amend section 52.212–5 by revising the date of the clause to read ‘‘(APR 2006)’’; and by removing from paragraphs (b)(24)(i) and (b)(25) ‘‘(JAN 2006)’’ and adding ‘‘(APR 2006)’’ in its place. [Amended] 8. Amend section 52.225–3 by revising the date of the clause to read ‘‘(APR 2006)’’; and in paragraph (c) by adding to the first sentence ‘‘(except the Morocco FTA)’’ after ‘‘FTAs’’. I 52.225–5 [Amended] 9. Amend section 52.225–5 by revising the date of the clause to read ‘‘(APR 2006)’’; and in paragraph (a), in the definition ‘‘Designated country’’ by adding to paragraph (2) ‘‘Morocco,’’ after ‘‘Mexico,’’. I 52.225–11 [Amended] 10. Amend section 52.225–11 by— a. Revising the date of the clause; b. Adding to paragraph (a), in the definition ‘‘Designated country’’ in paragraph (2) ‘‘Morocco,’’ after ‘‘Mexico,’’; I c. Removing from paragraph (b)(2) ‘‘domestic,’’ and adding ‘‘domestic or’’ in its place. I d. Amending Alternate I by— I 1. Revising the date of Alternate I; I 2. Removing from the introductory paragraph ‘‘Australian or Chilean’’ and adding ‘‘Australian, Chilean, or Moroccan’’ in its place; I 3. Revising the definition ‘‘Australian or Chilean construction material’’; and I 4. Removing from paragraphs (b)(1) and (b)(2) ‘‘Australian or Chilean’’ and adding ‘‘Australian, Chilean, or Moroccan’’ in its place. I The revised text reads as follows: wwhite on PROD1PC65 with RULES3 I I I 52.225–11 Buy American Act— Construction Materials under Trade Agreements. * * * VerDate Aug<31>2005 * * 52.225–12 [Amended] I 52.225–3 * * 18:56 Apr 18, 2006 Jkt 208001 * * * * * * [Amended] 11. Amend section 52.225–12 by revising the date of Alternate II to read ‘‘(APR 2006)’’; and by removing from paragraphs (a), (d)(1) twice, and (d)(3) twice ‘‘Australian or Chilean’’ and adding ‘‘Australian, Chilean, or Moroccan’’ in its place. I [FR Doc. 06–3685 Filed 4–18–06; 8:45 am] BILLING CODE 6820–EP–S DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 52 [FAC 2005–09; FAR Case 2004–031; Item IX; Docket FAR–2006–0020] RIN 9000–AK24 Federal Acquisition Regulation; FAR Case 2004–031, Fast Payment Procedures AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) by revising fast payment procedures. The revision permits, but does not require, fast payment when invoices and/or outer shipping containers are not marked ‘‘Fast Pay’’ provided the contract includes the ‘‘Fast Payment Procedure’’ clause. As highlighted in the clause, if the clause is in the contract, the invoices will no longer be rejected, as is PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 DoD, GSA, and NASA published a proposed rule, FAR case 2004–031, at 70 FR 40279 on July 13, 2005, to obtain comments on a proposal to amend the policies and contract clause regarding Fast Pay procedures. No comments were submitted and the rule was converted to a final rule without change from the proposed rule. FAR 52.213–1, Fast Payment Procedure, is revised to permit acceptance and payment under invoices that are not prominently marked ‘‘FAST PAY.’’ This change provides the payment office flexibility to make fast payments when invoices and/or outer shipping containers are not marked ‘‘FAST PAY.’’ The change permits, but does not require, fast payment when invoices and/or outer shipping containers are not marked ‘‘FAST PAY’’ provided the contract includes the ‘‘Fast Payment Procedure’’ clause. However, if the payment office decides to not process invoices as ‘‘FAST PAY’’ because the proper markings are not present, the payment date will be the payment date that would have applied had the ‘‘Fast Payment Procedure’’ clause not been in the contract. In this manner, an unmarked invoice will not be rejected. This change does not eliminate the requirement for the contractor to annotate an invoice ‘‘FAST PAY;’’ the contractor remains at risk that fast payment procedures will not be applied unless the invoice is annotated accordingly. If a receiving report is not prepared, it is imperative that the invoice includes sufficient information to facilitate follow-up verification that the item was received. The FAR revision does not eliminate that requirement for such information on the invoice. However, the revision does not require the statement ‘‘No Receiving Report Prepared’’ on the invoice. This is not a significant regulatory action and, therefore, was not subject to E:\FR\FM\19APR3.SGM 19APR3 Federal Register / Vol. 71, No. 75 / Wednesday, April 19, 2006 / Rules and Regulations review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. payment office for fast payment. If the payment office declines to make fast payment, the Contractor shall be paid in accordance with procedures applicable to invoices to which the Fast Payment clause does not apply. B. Regulatory Flexibility Act The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify 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 it will have a beneficial, but small, impact. Under the prior policy and clause, small businesses which failed to follow the fast payment clause instructions to mark the invoice ‘‘FAST PAY’’ had their invoices rejected, which means they would not be paid until they sent a corrected invoice. The clause revisions mean the invoices would not have to be automatically rejected. No comments were received from small entities or other members of the public. * C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. * * * * (3) If this contract, order, or blanket purchase agreement requires the preparation of a receiving report, the Contractor shall either— (i) Submit the receiving report on the prescribed form with the invoice; or (ii) Include the following information on the invoice: (A) Shipment number. (B) Mode of shipment. (C) At line item level— (1) National stock number and/or manufacturer’s part number; (2) Unit of measure; (3) Ship-To Point; (4) Mark-For Point, if in the contract; and (5) FEDSTRIP/MILSTRIP document number, if in the contract. * * * * * (e) Fast pay container identification. The Contractor shall mark all outer shipping containers ‘‘FAST PAY.’’ When outer shipping containers are not marked ‘‘FAST PAY,’’ the payment office may make fast payment. If the payment office declines to make fast payment, the Contractor shall be paid in accordance with procedures applicable to invoices to which the Fast Payment clause does not apply. (End of clause) [FR Doc. 06–3686 Filed 4–18–06; 8:45 am] cite FAC 2005–09, Technical Amendment. List of Subjects in 48 CFR Part 19 Government procurement. Dated: April 12, 2006. Gerald Zaffos, Director, Contract Policy Division. Therefore, DoD, GSA, and NASA amend 48 CFR part 19 as set forth below: I PART 19—SMALL BUSINESS PROGRAMS 1. The authority citation for 48 CFR part 19 continues to read as follows: I Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). 19.1005 [Amended] 2. Amend section 19.1005 in paragraph (a) in Item 3 of the NAICS Description by removing from the end of NAICS code entry ‘‘541310’’ the word ‘‘or’’. I [FR Doc. 06–3687 Filed 4–18–06; 8:45 am] BILLING CODE 6820–EP–S DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION BILLING CODE 6820–EP–S NATIONAL AERONAUTICS AND SPACE ADMINISTRATION List of Subjects in 48 CFR Parts 52 Government procurement. DEPARTMENT OF DEFENSE 48 CFR Chapter 1 Dated: April 12, 2006. Gerald Zaffos, Director,Contract Policy Division. GENERAL SERVICES ADMINISTRATION Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth below: NATIONAL AERONAUTICS AND SPACE ADMINISTRATION I 1. The authority citation for 48 CFR part 52 continues to read as follows: I AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. 2. Amend section 52.213–1 by revising the date of the clause and paragraphs (c)(1)(ii), (c)(3), and (e) to read as follows: I * * Fast Payment Procedure. * * * FAST PAYMENT PROCEDURE (APR 2006) * * * * * (c) * * * (1) * * * (ii) Display prominently on the invoice ‘‘FAST PAY.’’ Invoices not prominently marked ‘‘FAST PAY’’ via manual or electronic means may be accepted by the VerDate Aug<31>2005 18:56 Apr 18, 2006 Jkt 208001 [FAC 2005–09; Item X; Docket FAR–2006– 0021] Federal Acquisition Regulation; Technical Amendment Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). 52.213–1 [Docket FAR–2006–0023] 48 CFR Part 19 PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES wwhite on PROD1PC65 with RULES3 20309 SUMMARY: This document amends the Federal Acquisition Regulation (FAR) to make an editorial correction. DATES: Effective Date: April 19, 2006. FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501–4755, for information pertaining to status or publication schedules. Please PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 Federal Acquisition Regulation; Federal Acquisition Circular 2005–09; Small Entity Compliance Guide Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Small Entity Compliance Guide. AGENCIES: SUMMARY: This document is issued under the joint authority of the Secretary of Defense, the Administrator of General Services and the Administrator for the National Aeronautics and Space Administration. This Small Entity Compliance Guide has been prepared in accordance with Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. It consists of a summary of rules appearing in Federal Acquisition Circular (FAC) 2005–09 which amend the FAR. An asterisk (*) next to a rule indicates that a regulatory flexibility analysis has been prepared. Interested parties may obtain further information regarding these rules by referring to FAC E:\FR\FM\19APR3.SGM 19APR3

Agencies

[Federal Register Volume 71, Number 75 (Wednesday, April 19, 2006)]
[Rules and Regulations]
[Pages 20308-20309]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3686]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 2005-09; FAR Case 2004-031; Item IX; Docket FAR-2006-0020]
RIN 9000-AK24


Federal Acquisition Regulation; FAR Case 2004-031, Fast Payment 
Procedures

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) by revising fast 
payment procedures. The revision permits, but does not require, fast 
payment when invoices and/or outer shipping containers are not marked 
``Fast Pay'' provided the contract includes the ``Fast Payment 
Procedure'' clause. As highlighted in the clause, if the clause is in 
the contract, the invoices will no longer be rejected, as is the 
current practice. Instead, they will be paid using either fast payment 
or normal payment procedures. In addition, the revision deletes the 
requirement for marking invoices ``No Receiving Report Prepared.''

DATES: Effective Date: May 19, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Jeremy Olson, Procurement Analyst, at (202) 501-3221. Please cite 
FAC 2005-09, FAR case 2004-031. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD, GSA, and NASA published a proposed rule, FAR case 2004-031, at 
70 FR 40279 on July 13, 2005, to obtain comments on a proposal to amend 
the policies and contract clause regarding Fast Pay procedures. No 
comments were submitted and the rule was converted to a final rule 
without change from the proposed rule. FAR 52.213-1, Fast Payment 
Procedure, is revised to permit acceptance and payment under invoices 
that are not prominently marked ``FAST PAY.''
    This change provides the payment office flexibility to make fast 
payments when invoices and/or outer shipping containers are not marked 
``FAST PAY.'' The change permits, but does not require, fast payment 
when invoices and/or outer shipping containers are not marked ``FAST 
PAY'' provided the contract includes the ``Fast Payment Procedure'' 
clause. However, if the payment office decides to not process invoices 
as ``FAST PAY'' because the proper markings are not present, the 
payment date will be the payment date that would have applied had the 
``Fast Payment Procedure'' clause not been in the contract. In this 
manner, an unmarked invoice will not be rejected. This change does not 
eliminate the requirement for the contractor to annotate an invoice 
``FAST PAY;'' the contractor remains at risk that fast payment 
procedures will not be applied unless the invoice is annotated 
accordingly.
    If a receiving report is not prepared, it is imperative that the 
invoice includes sufficient information to facilitate follow-up 
verification that the item was received. The FAR revision does not 
eliminate that requirement for such information on the invoice. 
However, the revision does not require the statement ``No Receiving 
Report Prepared'' on the invoice.
    This is not a significant regulatory action and, therefore, was not 
subject to

[[Page 20309]]

review under Section 6(b) of Executive Order 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify 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 it will have a 
beneficial, but small, impact. Under the prior policy and clause, small 
businesses which failed to follow the fast payment clause instructions 
to mark the invoice ``FAST PAY'' had their invoices rejected, which 
means they would not be paid until they sent a corrected invoice. The 
clause revisions mean the invoices would not have to be automatically 
rejected. No comments were received from small entities or other 
members of the public.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose 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 52

    Government procurement.

    Dated: April 12, 2006.
Gerald Zaffos,
Director,Contract Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

0
2. Amend section 52.213-1 by revising the date of the clause and 
paragraphs (c)(1)(ii), (c)(3), and (e) to read as follows:


52.213-1  Fast Payment Procedure.

* * * * *

FAST PAYMENT PROCEDURE (APR 2006)

* * * * *
    (c) * * *
    (1) * * *
    (ii) Display prominently on the invoice ``FAST PAY.'' Invoices 
not prominently marked ``FAST PAY'' via manual or electronic means 
may be accepted by the payment office for fast payment. If the 
payment office declines to make fast payment, the Contractor shall 
be paid in accordance with procedures applicable to invoices to 
which the Fast Payment clause does not apply.
* * * * *
    (3) If this contract, order, or blanket purchase agreement 
requires the preparation of a receiving report, the Contractor shall 
either--
    (i) Submit the receiving report on the prescribed form with the 
invoice; or
    (ii) Include the following information on the invoice:
    (A) Shipment number.
    (B) Mode of shipment.
    (C) At line item level--
    (1) National stock number and/or manufacturer's part number;
    (2) Unit of measure;
    (3) Ship-To Point;
    (4) Mark-For Point, if in the contract; and
    (5) FEDSTRIP/MILSTRIP document number, if in the contract.
* * * * *
    (e) Fast pay container identification. The Contractor shall mark 
all outer shipping containers ``FAST PAY.'' When outer shipping 
containers are not marked ``FAST PAY,'' the payment office may make 
fast payment. If the payment office declines to make fast payment, 
the Contractor shall be paid in accordance with procedures 
applicable to invoices to which the Fast Payment clause does not 
apply.
    (End of clause)
[FR Doc. 06-3686 Filed 4-18-06; 8:45 am]
BILLING CODE 6820-EP-S

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