Federal Acquisition Regulation; FAR Case 2006-026, Governmentwide Commercial Purchase Card Restrictions for Treasury Offset Program Debts, 74255-74257 [E7-25424]
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Federal Register / Vol. 72, No. 249 / Monday, December 31, 2007 / Proposed Rules
This action also does not have
Federalism implications because it does
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 (64 FR 43255,
August 10, 1999). This action does not
alter the relationship or the distribution
of power and responsibilities
established in the CAA.
This proposed rule also is not subject
to Executive Order 13045 ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’ (62 FR 19885,
April 23, 1997), because it is not
economically significant. As discussed
above, a voluntary reclassification under
section 181(b)(3) of the CAA is based
solely on the request of a State and EPA
is required to grant such a request. In
this context, it would thus be
inconsistent with applicable law for
EPA, when it grants a State’s request for
a voluntary reclassification to, use
voluntary consensus standards. Thus
the requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) also do not apply. In addition,
this proposed rule does not impose an
information collection burden under the
provisions of the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.).
Lastly, executive Order 12898 (59 FR
7629, February 16, 1994) establishes
federal executive policy on
environmental justice. Its main
provision directs federal agencies, to the
greatest extent practicable and
permitted by law, to make
environmental justice part of their
mission by identifying and addressing,
as appropriate, disproportionately high
and adverse human health or
environmental effects of their programs,
policies, and activities on minority
populations and low-income
populations in the United States. As
stated earlier in this Notice EPA intends
to take a final action granting the State’s
request for a voluntary reclassification.
The plain language of section 181(b)(3)
of CAA mandates that we ‘‘shall’’
approve such a request if it is made in
accordance with the requirements of the
Act, and, as such, does not provide the
Agency with the discretionary authority
to address concerns raised outside the
Act, including those contained in
Executive Order 12898.
List of Subjects in 40 CFR Part 81
Environmental protection, Air
pollution control, Intergovernmental
relations, Nitrogen oxides, Ozone,
Reporting and recordkeeping
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requirements, Volatile organic
compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: December 18, 2007.
Richard E. Greene,
Regional Administrator, Region 6.
[FR Doc. E7–25402 Filed 12–28–07; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 4, 8, 13, 17, 32, and 52
[FAR Case 2006–026; Docket 2007–0001;
Sequence 13]
RIN 9000–AK87
Federal Acquisition Regulation; FAR
Case 2006–026, Governmentwide
Commercial Purchase Card
Restrictions for Treasury Offset
Program Debts
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to
restrict the use of the Governmentwide
commercial purchase card as a method
of payment for contractors with debts
subject to the Treasury Offset Program.
DATES: Interested parties should submit
written comments to the FAR
Secretariat on or before February 29,
2008 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments
identified by FAR case 2006–026 by any
of the following methods:
Federal eRulemaking Portal: https://
www.regulations.gov.
• To search for any document, first
select under ‘‘Step 1,’’ ‘‘Documents with
an Open Comment Period’’ and select
under ‘‘Optional Step 2,’’ ‘‘Federal
Acquisition Regulation’’ as the agency
of choice. Under ‘‘Optional Step 3,’’
select ‘‘Proposed Rules’’. Under
‘‘Optional Step 4,’’ from the drop down
list, select ‘‘Document Title’’ and type
the FAR case number ‘‘2006–026’’. Click
the ‘‘Submit’’ button. Please include
your name and company name (if any)
inside the document. You may also
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74255
search for any document by clicking on
the ‘‘Search for Documents’’ tab at the
top of the screen. Select from the agency
field ‘‘Federal Acquisition Regulation’’,
and type ‘‘2006–026’’ in the ‘‘Document
Title’’ field. Select the ‘‘Submit’’ button.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(VPR), 1800 F Street, NW, Room 4035,
ATTN: Diedra Wingate, Washington, DC
20405.
Instructions: Please submit comments
only and cite FAR case 2006–026 in all
correspondence related to this case. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Mr.
Michael Jackson, Procurement Analyst,
at (202) 208–4949 for clarification of
content. For information pertaining to
status or publication schedules, contact
the FAR Secretariat at (202) 501–4755.
Please cite FAR case 2006–026.
SUPPLEMENTARY INFORMATION:
A. Background
The Debt Collection Improvement Act
of 1996 and other statutes provide the
tools for administering a centralized
program for the collection of delinquent,
non-tax and tax debts. The Financial
Management Service (FMS), a bureau of
the Department of the Treasury, is
charged with implementing the
Government’s delinquent debt
collection program. Since 1996, FMS
has collected more than $24.4 billion in
delinquent debt. In fiscal year 2006,
collections of delinquent debt remained
at a constant $3.1 billion.
To collect delinquent debts owed to
Federal agencies and states, FMS uses
the Treasury Offset Program (TOP).
Information on TOP is available at
https://fms.treas.gov/debt/.
TOP uses both ‘‘offsets’’ and
‘‘continuous levies’’ to collect
delinquent debts.
Offset is a process whereby Federal
payments are reduced or ‘‘offset’’ to
satisfy a person’s overdue Federal debt,
child support obligation, or state tax
debt. A payee’s name and taxpayer
identification number are matched
against a Treasury/FMS database of
delinquent debtors for automatic offset
of funds. Offset funds are then used to
satisfy payment of the delinquent debt
to the extent allowed by law.
Under the continuous levy program,
delinquent Federal tax debts are
collected by levying non-tax payments
until the debt is satisfied, as authorized
by the 1997 Taxpayer Relief Act. The
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continuous levy program includes levy
of some vendor payments (Treasury
disbursed and non-Treasury disbursed
payments), Federal employee salary
payments, the Office of Personnel
Management retirement payments, and
social security benefit payments.
Continuous levy is accomplished
through a process almost identical to
that of offset. FMS matches delinquent
debtor data with payment record data
for automated collection of the debt at
the time of payment, after the
delinquent taxpayer has been afforded
due process.
FMS is currently unable to offset or
apply a continuous levy to payments
made to contractors with delinquent
debts when the Governmentwide
commercial purchase card is used as the
method of payment. When the
Governmentwide commercial purchase
card is used as the method of payment,
the Government does not make a direct
payment to the contractor. Instead, the
processing bank for the
Governmentwide commercial purchase
card pays the contractor.
To assess the significance of the
problem, FMS and VISA, one of the
processing banks, matched VISA
payments for Governmentwide purchase
card transactions for one year. As a
result of the match, FMS determined
that approximately $73.5 million dollars
of delinquent debts subject to collection
under TOP were not collected because
the debtors were paid using the
Governmentwide commercial purchase
card. The individual payments that
would otherwise have been collected
were all in excess of the micropurchase
threshold.
To help increase the collection of
delinquent debts owed to the
Government, the rule proposes to
amend the FAR to require contracting
officers to determine whether the
Central Contractor Registration (CCR)
indicates that the contractor has
delinquent debt that is subject to
collection under the TOP. If a debt
indicator is found, the Governmentwide
commercial purchase card is not
authorized as a method of payment. The
contracting officer is required to check
for the flag at the time of contract award,
order placement, and again before
exercising any options. The rule also
proposes to amend the applicable
Governmentwide commercial purchase
card payment clause at 52.232–36 to
advise contractors that the
Governmentwide commercial purchase
card is not authorized as a method of
payment if a debt indicator is included
in the CCR for the contractor. The clause
is written to allow contracting officers to
unilaterally exercise options without
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having to bilaterally negotiate revisions
to the original contract terms and
conditions if the debt indicator is
subsequently found during the
execution of an option. This rule would
not apply to individual travel charge
cards or centrally billed accounts for
travel/transportation services.
This is not a significant regulatory
action and, therefore, was not subject to
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.
(3) Need not verify registration before
placing an order or call if the contract
or agreement includes the clause at
52.204–7, or 52.212–4(t), or a similar
agency clause, except when payment by
the Governmentwide commercial
purchase card is contemplated (see
32.1108(b)(2)).
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B. Regulatory Flexibility Act
The Councils do not expect this
proposed 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 only impacts the method by which
a contractor can be paid when the
contractor has a delinquent debt. An
Initial Regulatory Flexibility Analysis
has, therefore, not been performed. We
invite comments from small businesses
and other interested parties. The
Councils will consider comments from
small entities concerning the affected
FAR Parts 4, 8, 13, 17, 32, and 52 in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C. 601,
et seq. (FAR case 2006–026), in
correspondence.
8.405–7
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the proposed 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 4, 8, 13,
17, 32, and 52
Government procurement.
Dated: December 20, 2007.
Al Matera,
Director, Office of Acquisition Policy.
Therefore, DoD, GSA, and NASA
propose amending 48 CFR parts 4, 8, 13,
17, 32, and 52 as set forth below:
1. The authority citation for 48 CFR
parts 4, 8, 13, 17, 32, and 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).
PART 4—ADMINISTRATIVE MATTERS
2. Amend section 4.1103 by revising
paragraph (a)(3) to read as follows:
4.1103
Procedures.
(a) * * *
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PART 8—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
3. Revise section 8.405–7 to read as
follows:
Payment.
Agencies may make payments for oral
or written orders by any authorized
means, including the Governmentwide
commercial purchase card (but see
32.1108(b)(2)).
PART 13—SIMPLIFIED ACQUISITION
PROCEDURES
4. Amend section 13.003 by revising
paragraph (e) to read as follows:
13.003
Policy.
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(e) Agencies shall use the
Governmentwide commercial purchase
card and electronic purchasing
techniques to the maximum extent
practicable in conducting simplified
acquisitions (but see 32.1108(b)(2)).
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5. Amend section 13.301 by revising
the first sentence of paragraph (a) and
paragraph (c)(3) to read as follows:
13.301 Governmentwide commercial
purchase card.
(a) Except as provided in
32.1108(b)(2), the Governmentwide
commercial purchase card is authorized
for use in making and/or paying for
purchases of supplies, services, or
construction. * * *
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*
(c) * * *
(3) Make payments, when the
contractor agrees to accept payment by
the card (but see 32.1108(b)(2)).
PART 17—SPECIAL CONTRACTING
METHODS
6. Amend section 17.207 by revising
paragraph (f) to read as follows:
17.207
Exercise of options.
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*
(f) Before exercising an option—
(1) The contracting officer shall make
a written determination for the contract
file that exercise is in accordance with
the terms of the option, the
requirements of this section, and Part 6.
To satisfy requirements of Part 6
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regarding full and open competition, the
option must have been evaluated as part
of the initial competition and be
exercisable at an amount specified in or
reasonably determinable from the terms
of the basic contract, e.g.—
(i) A specific dollar amount;
(ii) An amount to be determined by
applying provisions (or a formula)
provided in the basic contract, but not
including renegotiation of the price for
work in a fixed-price type contract;
(iii) In the case of a cost-type contract,
if—
(A) The option contains a fixed or
maximum fee; or
(B) The fixed or maximum fee amount
is determinable by applying a formula
contained in the basic contract (but see
16.102(c));
(iv) A specific price that is subject to
an economic price adjustment
provision; or
(v) A specific price that is subject to
change as the result of changes to
prevailing labor rates provided by the
Secretary of Labor.
(2) See 32.1108(b)(2) for restrictions
on the use of the Governmentwide
commercial purchase card as a method
of payment when the Central Contractor
Registration (CCR) shows a delinquent
debt flag.
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*
PART 32—CONTRACT FINANCING
7. Amend section 32.1108 by revising
paragraph (b) to read as follows:
32.1108 Payment by Governmentwide
commercial purchase card.
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(b)(1) Written contracts to be paid by
purchase card should include the clause
at 52.232–36, Payment by Third Party,
as prescribed by 32.1110(d). However,
payment by a purchase card also may be
made under a contract that does not
contain the clause to the extent the
contractor agrees to accept that method
of payment.
(2)(i) Contracting officers are required
to verify (by looking in CCR) whether
the contractor has any delinquent debt
subject to collection under the Treasury
Offset Program (TOP) program at
contract award, order placement, and
prior to any option exercise. Information
on TOP is available at https://
fms.treas.gov/debt/.
(ii) The contracting officer shall not
authorize the Governmentwide
commercial purchase card as a method
of payment when the Central Contractor
Registration (CCR) indicates that the
contractor has delinquent debt subject
to collection under the TOP. In such
cases, the contracting officer shall
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provide alternative payment
instructions to the contractor.
Contracting officers shall not use the
presence of the delinquent debt
indicator to exclude a contractor from
receipt of the contract, order, or
exercised option.
(iii) If a contractor alerts the
contracting officer that the CCR debt flag
indicator has been changed to no longer
show a delinquent debt, the contracting
officer may take steps to authorize
payment by Governmentwide
commercial purchase card.
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PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
74257
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 300
[Docket No. 071031633–7834–01]
RIN 0648–AW23
Pacific Halibut Fisheries; Guided Sport
Charter Vessel Fishery for Halibut
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
AGENCY:
SUMMARY: NMFS proposes regulations
that would limit the harvest of Pacific
halibut by guided sport charter vessel
anglers in International Pacific Halibut
52.232–36 Payment by Third Party.
Commission (IPHC) Area 2C of
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Southeast Alaska to the guideline
PAYMENT BY THIRD PARTY (DATE)
harvest level (GHL) for that area under
two different scenarios. First, if the GHL
(a) General. (1) Except as provided in
paragraph (a)(2) of this clause, the Contractor remains unchanged in 2008, a suite of
agrees to accept payments due under this
three management measures are
contract, through payment by a third party in proposed to be added to an existing twolieu of payment directly from the
halibut daily catch and size limit. These
Government, in accordance with the terms of
management measures include a
this clause. The third party and, if applicable,
prohibition on the harvest of halibut by
the particular Governmentwide commercial
charter vessel guides, operators, and
purchase card to be used are identified
crew; a limit on the number of fishing
elsewhere in this contract.
lines that may be used on a charter
(2) The Governmentwide commercial
purchase card is not authorized as a method
vessel of six or the number of charter
of payment when the Central Contractor
vessel anglers onboard, whichever is
Registration (CCR) indicates that the
less; and an annual catch limit of four
Contractor has delinquent debt that is subject halibut per charter vessel angler.
to collection under the Treasury Offset
Second, if the GHL decreases in 2008,
Program (TOP). Information on TOP is
then a one-halibut daily catch limit is
available at https://fms.treas.gov/debt/
index.html. If the CCR subsequently indicates proposed to be substituted for the
existing two-halibut daily catch limit.
that the Contractor no longer has delinquent
The prohibition of halibut harvest by
debt, the Contractor may request the
Contracting Officer to authorize payment by
charter vessel guides, operators, and
Governmentwide commercial purchase card.
crew, and the 6-line limit also are
(b) Contractor payment request. (1) Except
proposed under the second scenario.
as provided in paragraph (b)(2) of this clause, This proposed regulatory change is
the Contractor shall make such payment
necessary to reduce the halibut harvest
requests through a charge to the Government
in the charter vessel sector to the GHL
account with the third party, at the time and
for Area 2C. The intended effect of this
for the amount due in accordance with those
action is a reduction in the poundage of
clauses of this contract that authorize the
halibut harvested by the guided sport
Contractor to submit invoices, contract
financing requests, other payment requests,
charter vessel sector in Area 2C to the
or as provided in other clauses providing for
GHL while minimizing adverse impacts
payment to the Contractor.
on the charter fishery, its sport fishing
(2) When the Contracting Officer has
clients, the coastal communities that
notified the Contractor that the
serve as home ports for this fishery, and
Governmentwide commercial purchase card
on fisheries for other species.
is no longer an authorized method of
DATES: Comments must be received no
payment, the Contractor shall make such
later than January 30, 2008.
payment requests in accordance with
instructions provided by the Contracting
ADDRESSES: Send comments to Sue
Officer during the period when the purchase
Salveson, Assistant Regional
card is not authorized.
Administrator, Sustainable Fisheries
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Division, Alaska Region, NMFS, Attn:
[FR Doc. E7–25424 Filed 12–28–07; 8:45 am]
Ellen Sebastian. You may submit
comments, identified by ‘‘RIN 0648–
BILLING CODE 6820–EP–S
8. Amend section 52.232–36 by
revising the date of the clause and
paragraphs (a) and (b) to read as follows:
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]]>Agencies
[Federal Register Volume 72, Number 249 (Monday, December 31, 2007)]
[Proposed Rules]
[Pages 74255-74257]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-25424]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 8, 13, 17, 32, and 52
[FAR Case 2006-026; Docket 2007-0001; Sequence 13]
RIN 9000-AK87
Federal Acquisition Regulation; FAR Case 2006-026, Governmentwide
Commercial Purchase Card Restrictions for Treasury Offset Program Debts
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to restrict the use of the
Governmentwide commercial purchase card as a method of payment for
contractors with debts subject to the Treasury Offset Program.
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before February 29, 2008 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2006-026 by any of
the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
To search for any document, first select under ``Step 1,''
``Documents with an Open Comment Period'' and select under ``Optional
Step 2,'' ``Federal Acquisition Regulation'' as the agency of choice.
Under ``Optional Step 3,'' select ``Proposed Rules''. Under ``Optional
Step 4,'' from the drop down list, select ``Document Title'' and type
the FAR case number ``2006-026''. Click the ``Submit'' button. Please
include your name and company name (if any) inside the document. You
may also search for any document by clicking on the ``Search for
Documents'' tab at the top of the screen. Select from the agency field
``Federal Acquisition Regulation'', and type ``2006-026'' in the
``Document Title'' field. Select the ``Submit'' button.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VPR), 1800 F Street, NW, Room 4035, ATTN: Diedra Wingate,
Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2006-
026 in all correspondence related to this case. All comments received
will be posted without change to https://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Jackson, Procurement
Analyst, at (202) 208-4949 for clarification of content. For
information pertaining to status or publication schedules, contact the
FAR Secretariat at (202) 501-4755. Please cite FAR case 2006-026.
SUPPLEMENTARY INFORMATION:
A. Background
The Debt Collection Improvement Act of 1996 and other statutes
provide the tools for administering a centralized program for the
collection of delinquent, non-tax and tax debts. The Financial
Management Service (FMS), a bureau of the Department of the Treasury,
is charged with implementing the Government's delinquent debt
collection program. Since 1996, FMS has collected more than $24.4
billion in delinquent debt. In fiscal year 2006, collections of
delinquent debt remained at a constant $3.1 billion.
To collect delinquent debts owed to Federal agencies and states,
FMS uses the Treasury Offset Program (TOP). Information on TOP is
available at https://fms.treas.gov/debt/. TOP uses both
``offsets'' and ``continuous levies'' to collect delinquent debts.
Offset is a process whereby Federal payments are reduced or
``offset'' to satisfy a person's overdue Federal debt, child support
obligation, or state tax debt. A payee's name and taxpayer
identification number are matched against a Treasury/FMS database of
delinquent debtors for automatic offset of funds. Offset funds are then
used to satisfy payment of the delinquent debt to the extent allowed by
law.
Under the continuous levy program, delinquent Federal tax debts are
collected by levying non-tax payments until the debt is satisfied, as
authorized by the 1997 Taxpayer Relief Act. The
[[Page 74256]]
continuous levy program includes levy of some vendor payments (Treasury
disbursed and non-Treasury disbursed payments), Federal employee salary
payments, the Office of Personnel Management retirement payments, and
social security benefit payments. Continuous levy is accomplished
through a process almost identical to that of offset. FMS matches
delinquent debtor data with payment record data for automated
collection of the debt at the time of payment, after the delinquent
taxpayer has been afforded due process.
FMS is currently unable to offset or apply a continuous levy to
payments made to contractors with delinquent debts when the
Governmentwide commercial purchase card is used as the method of
payment. When the Governmentwide commercial purchase card is used as
the method of payment, the Government does not make a direct payment to
the contractor. Instead, the processing bank for the Governmentwide
commercial purchase card pays the contractor.
To assess the significance of the problem, FMS and VISA, one of the
processing banks, matched VISA payments for Governmentwide purchase
card transactions for one year. As a result of the match, FMS
determined that approximately $73.5 million dollars of delinquent debts
subject to collection under TOP were not collected because the debtors
were paid using the Governmentwide commercial purchase card. The
individual payments that would otherwise have been collected were all
in excess of the micropurchase threshold.
To help increase the collection of delinquent debts owed to the
Government, the rule proposes to amend the FAR to require contracting
officers to determine whether the Central Contractor Registration (CCR)
indicates that the contractor has delinquent debt that is subject to
collection under the TOP. If a debt indicator is found, the
Governmentwide commercial purchase card is not authorized as a method
of payment. The contracting officer is required to check for the flag
at the time of contract award, order placement, and again before
exercising any options. The rule also proposes to amend the applicable
Governmentwide commercial purchase card payment clause at 52.232-36 to
advise contractors that the Governmentwide commercial purchase card is
not authorized as a method of payment if a debt indicator is included
in the CCR for the contractor. The clause is written to allow
contracting officers to unilaterally exercise options without having to
bilaterally negotiate revisions to the original contract terms and
conditions if the debt indicator is subsequently found during the
execution of an option. This rule would not apply to individual travel
charge cards or centrally billed accounts for travel/transportation
services.
This is not a significant regulatory action and, therefore, was not
subject to 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 Councils do not expect this proposed 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 only impacts the method by which a contractor can be
paid when the contractor has a delinquent debt. An Initial Regulatory
Flexibility Analysis has, therefore, not been performed. We invite
comments from small businesses and other interested parties. The
Councils will consider comments from small entities concerning the
affected FAR Parts 4, 8, 13, 17, 32, and 52 in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should
cite 5 U.S.C. 601, et seq. (FAR case 2006-026), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
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 4, 8, 13, 17, 32, and 52
Government procurement.
Dated: December 20, 2007.
Al Matera,
Director, Office of Acquisition Policy.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 4, 8,
13, 17, 32, and 52 as set forth below:
1. The authority citation for 48 CFR parts 4, 8, 13, 17, 32, and 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).
PART 4--ADMINISTRATIVE MATTERS
2. Amend section 4.1103 by revising paragraph (a)(3) to read as
follows:
4.1103 Procedures.
(a) * * *
(3) Need not verify registration before placing an order or call if
the contract or agreement includes the clause at 52.204-7, or 52.212-
4(t), or a similar agency clause, except when payment by the
Governmentwide commercial purchase card is contemplated (see
32.1108(b)(2)).
* * * * *
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
3. Revise section 8.405-7 to read as follows:
8.405-7 Payment.
Agencies may make payments for oral or written orders by any
authorized means, including the Governmentwide commercial purchase card
(but see 32.1108(b)(2)).
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
4. Amend section 13.003 by revising paragraph (e) to read as
follows:
13.003 Policy.
* * * * *
(e) Agencies shall use the Governmentwide commercial purchase card
and electronic purchasing techniques to the maximum extent practicable
in conducting simplified acquisitions (but see 32.1108(b)(2)).
* * * * *
5. Amend section 13.301 by revising the first sentence of paragraph
(a) and paragraph (c)(3) to read as follows:
13.301 Governmentwide commercial purchase card.
(a) Except as provided in 32.1108(b)(2), the Governmentwide
commercial purchase card is authorized for use in making and/or paying
for purchases of supplies, services, or construction. * * *
* * * * *
(c) * * *
(3) Make payments, when the contractor agrees to accept payment by
the card (but see 32.1108(b)(2)).
PART 17--SPECIAL CONTRACTING METHODS
6. Amend section 17.207 by revising paragraph (f) to read as
follows:
17.207 Exercise of options.
* * * * *
(f) Before exercising an option--
(1) The contracting officer shall make a written determination for
the contract file that exercise is in accordance with the terms of the
option, the requirements of this section, and Part 6. To satisfy
requirements of Part 6
[[Page 74257]]
regarding full and open competition, the option must have been
evaluated as part of the initial competition and be exercisable at an
amount specified in or reasonably determinable from the terms of the
basic contract, e.g.--
(i) A specific dollar amount;
(ii) An amount to be determined by applying provisions (or a
formula) provided in the basic contract, but not including
renegotiation of the price for work in a fixed-price type contract;
(iii) In the case of a cost-type contract, if--
(A) The option contains a fixed or maximum fee; or
(B) The fixed or maximum fee amount is determinable by applying a
formula contained in the basic contract (but see 16.102(c));
(iv) A specific price that is subject to an economic price
adjustment provision; or
(v) A specific price that is subject to change as the result of
changes to prevailing labor rates provided by the Secretary of Labor.
(2) See 32.1108(b)(2) for restrictions on the use of the
Governmentwide commercial purchase card as a method of payment when the
Central Contractor Registration (CCR) shows a delinquent debt flag.
* * * * *
PART 32--CONTRACT FINANCING
7. Amend section 32.1108 by revising paragraph (b) to read as
follows:
32.1108 Payment by Governmentwide commercial purchase card.
* * * * *
(b)(1) Written contracts to be paid by purchase card should include
the clause at 52.232-36, Payment by Third Party, as prescribed by
32.1110(d). However, payment by a purchase card also may be made under
a contract that does not contain the clause to the extent the
contractor agrees to accept that method of payment.
(2)(i) Contracting officers are required to verify (by looking in
CCR) whether the contractor has any delinquent debt subject to
collection under the Treasury Offset Program (TOP) program at contract
award, order placement, and prior to any option exercise. Information
on TOP is available at https://fms.treas.gov/debt/.
(ii) The contracting officer shall not authorize the Governmentwide
commercial purchase card as a method of payment when the Central
Contractor Registration (CCR) indicates that the contractor has
delinquent debt subject to collection under the TOP. In such cases, the
contracting officer shall provide alternative payment instructions to
the contractor. Contracting officers shall not use the presence of the
delinquent debt indicator to exclude a contractor from receipt of the
contract, order, or exercised option.
(iii) If a contractor alerts the contracting officer that the CCR
debt flag indicator has been changed to no longer show a delinquent
debt, the contracting officer may take steps to authorize payment by
Governmentwide commercial purchase card.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
8. Amend section 52.232-36 by revising the date of the clause and
paragraphs (a) and (b) to read as follows:
52.232-36 Payment by Third Party.
* * * * *
PAYMENT BY THIRD PARTY (DATE)
(a) General. (1) Except as provided in paragraph (a)(2) of this
clause, the Contractor agrees to accept payments due under this
contract, through payment by a third party in lieu of payment
directly from the Government, in accordance with the terms of this
clause. The third party and, if applicable, the particular
Governmentwide commercial purchase card to be used are identified
elsewhere in this contract.
(2) The Governmentwide commercial purchase card is not
authorized as a method of payment when the Central Contractor
Registration (CCR) indicates that the Contractor has delinquent debt
that is subject to collection under the Treasury Offset Program
(TOP). Information on TOP is available at https://fms.treas.gov/debt/
index.html. If the CCR subsequently indicates that the Contractor no
longer has delinquent debt, the Contractor may request the
Contracting Officer to authorize payment by Governmentwide
commercial purchase card.
(b) Contractor payment request. (1) Except as provided in
paragraph (b)(2) of this clause, the Contractor shall make such
payment requests through a charge to the Government account with the
third party, at the time and for the amount due in accordance with
those clauses of this contract that authorize the Contractor to
submit invoices, contract financing requests, other payment
requests, or as provided in other clauses providing for payment to
the Contractor.
(2) When the Contracting Officer has notified the Contractor
that the Governmentwide commercial purchase card is no longer an
authorized method of payment, the Contractor shall make such payment
requests in accordance with instructions provided by the Contracting
Officer during the period when the purchase card is not authorized.
* * * * *
[FR Doc. E7-25424 Filed 12-28-07; 8:45 am]
BILLING CODE 6820-EP-S
