Defense Federal Acquisition Regulation Supplement; Electronic Submission and Processing of Payment Requests (DFARS Case 2005-D009), 14240-14241 [E7-5478]
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14240
Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Rules and Regulations
issuance of the solicitation and the
associated technical data package to
United States and Canadian firms.
DoD does not agree with the
recommended change. A company
located in the United States or Canada
could fall within the definition of a
Communist Chinese military company if
it is owned or controlled by, or affiliated
with, an element of the Government or
armed forces of the People’s Republic of
China. Also, the prohibition applies to
subcontracts as well as contracts. An
item of critical military technology
could contain a subcontracted
component that is not subject to the
same controls as the end item, but is on
the USML. Therefore, the contracting
officer needs the specified notification
from the requirements activity to
identify all USML items and to ensure
that the clause at DFARS 252.225–7007
is included in solicitations and
contracts for those items.
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 affects only those
entities that are a part of the industrial
base of the People’s Republic of China
or that are owned or controlled by, or
affiliated with, an element of the
Government or armed forces of the
People’s Republic of China.
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 225 and
252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Interim Rule Adopted as Final Without
Change
Accordingly, the interim rule
amending 48 CFR Parts 225 and 252,
which was published at 71 FR 53045 on
September 8, 2006, is adopted as a final
rule without change.
rmajette on PROD1PC67 with RULES
I
[FR Doc. E7–5480 Filed 3–26–07; 8:45 am]
BILLING CODE 5001–08–P
VerDate Aug<31>2005
12:37 Mar 26, 2007
Jkt 211001
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)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
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.
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
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
E:\FR\FM\27MRR1.SGM
27MRR1
Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Rules and Regulations
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.
Therefore, 48 CFR parts 232 and 252
are amended as follows:
I 1. The authority citation for 48 CFR
parts 232 and 252 continues to read as
follows:
I
232.7003
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Section 232.7002 is revised to read
as follows:
I
rmajette on PROD1PC67 with RULES
[Amended]
3. Section 232.7003 is amended in
paragraph (a)(3) by removing ‘‘https://
www.dod.mil/dfas/’’ and adding in its
place ‘‘https://www.dod.mil/dfas/
contractorpay/
electroniccommerce.html’’.
I
PART 232—CONTRACT FINANCING
232.7002
(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.
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.
VerDate Aug<31>2005
12:37 Mar 26, 2007
Jkt 211001
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Section 252.232–7003 is amended
as follows:
I a. By revising the clause date and
paragraphs (b)(3)(ii) and (c);
I b. By redesignating paragraph (d) as
paragraph (e); and
I c. By adding a new paragraph (d) to
read as follows:
I
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 https://
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 nonelectronic payment requests using the
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14241
method or methods specified in Section G of
the contract.
*
*
*
*
*
[FR Doc. E7–5478 Filed 3–26–07; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
RIN 0750–AF49
Defense Federal Acquisition
Regulation Supplement; Free Trade
Agreements—Guatemala and Bahrain
(DFARS Case 2006–D028)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
SUMMARY: DoD has adopted as final,
without change, an interim rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement the United
States-Bahrain Free Trade Agreement
and the Dominican Republic-Central
America-United States Free Trade
Agreement with respect to Guatemala.
The Free Trade Agreements waive the
applicability of the Buy American Act
for some foreign supplies and
construction materials and specify
procurement procedures designed to
ensure fairness.
EFFECTIVE DATE: March 27, 2007.
FOR FURTHER INFORMATION CONTACT: Ms.
Amy Williams, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP(DARS), IMD 3C132,
3062 Defense Pentagon, Washington, DC
20301–3062. Telephone (703) 602–0328;
facsimile (703) 602–0350. Please cite
DFARS Case 2006–D028.
SUPPLEMENTARY INFORMATION:
A. Background
DoD published an interim rule at 71
FR 58541 on October 4, 2006, to
implement the Dominican RepublicCentral America-United States Free
Trade Agreement, with respect to
Guatemala, and the United StatesBahrain Free Trade Agreement. The rule
amended the appropriate DFARS
provisions and clauses to reflect the
addition of Guatemala and Bahrain as
Free Trade Agreement countries.
DoD received no comments on the
interim rule. Therefore, DoD has
adopted the interim rule as a final rule
without change.
This rule was not subject to Office of
Management and Budget review under
E:\FR\FM\27MRR1.SGM
27MRR1
]]>Agencies
[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Rules and Regulations]
[Pages 14240-14241]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5478]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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 ``https://www.dod.mil/dfas/
contractorpay/electroniccommerce.html''.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Section 252.232-7003 is amended as follows:
0
a. By revising the clause date and paragraphs (b)(3)(ii) and (c);
0
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
https://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]
BILLING CODE 5001-08-P
