Defense Federal Acquisition Regulation Supplement; Mandatory Use of Wide Area WorkFlow (DFARS Case 2006-D049), 11356-11359 [E8-3947]
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11356
Federal Register / Vol. 73, No. 42 / Monday, March 3, 2008 / Rules and Regulations
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 primarily clarifies
existing policy pertaining to the
acquisition of certain items from
domestic sources.
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.
Accordingly, the interim rule
amending 48 CFR parts 225 and 252,
which was published at 67 FR 20697 on
April 26, 2002, is adopted as a final rule
with the following changes:
I 1. The authority citation for 48 CFR
parts 225 and 252 continues to read as
follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 225—FOREIGN ACQUISITION
2. Section 225.7002–2 is amended by
revising paragraph (j) introductory text
to read as follows:
I
225.7002–2
Exceptions.
(j) Acquisitions of incidental amounts
of cotton, other natural fibers, or wool
incorporated in an end product, for
which the estimated value of the cotton,
other natural fibers, or wool—
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.212–7001
[Amended]
3. Section 252.212–7001 is amended
as follows:
I a. By revising the clause date to read
‘‘(MAR 2008)’’; and
I b. In paragraph (b)(5), by removing
‘‘(JAN 2007)’’ and adding in its place
‘‘(MAR 2008)’’.
I 4. Section 252.225–7012 is amended
by revising the clause date and
paragraph (c)(2) introductory text to
read as follows:
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I
252.225–7012 Preference for Certain
Domestic Commodities.
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PREFERENCE FOR CERTAIN
DOMESTIC COMMODITIES (MAR
2008)
respondents submitted comments on the
proposed rule. A discussion of the
comments is provided below:
*
1. Recommendation To Allow Third
Party Payment System (TPPS) U.S.
Bank—PowerTrack Transactions
Comment: Eight respondents
expressed concern that the rule would
no longer support the use of TPPS,
indicating that the rule fails to
acknowledge the unique needs of
suppliers who invoice on a transaction
basis, such as those in the express and
ground package delivery industry.
DoD Response: The rule has been
amended to permit the use of a DoDapproved electronic third party payment
system or other exempt vendor
payment/invoicing system (such as
PowerTrack, Transportation Financial
Management System, and Cargo and
Billing System) for payment of
commercial transportation services.
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(c) * * *
(2) To incidental amounts of cotton, other
natural fibers, or wool incorporated in an end
product, for which the estimated value of the
cotton, other natural fibers, or wool—
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[FR Doc. E8–3946 Filed 2–29–08; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 232 and 252 and
Appendix F to Chapter 2
RIN 0750–AF63
Defense Federal Acquisition
Regulation Supplement; Mandatory
Use of Wide Area WorkFlow (DFARS
Case 2006–D049)
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 require use of the Wide Area
WorkFlow electronic system for
submitting and processing payment
requests and receiving reports under
DoD contracts. Use of Wide Area
WorkFlow facilitates timely and
accurate payments to DoD contractors.
DATES: Effective Date: March 3, 2008.
FOR FURTHER INFORMATION CONTACT: Ms.
Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (CPF), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301–3062.
Telephone 703–602–0326; facsimile
703–602–7887. Please cite DFARS Case
2006–D049.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule requires use of the
Wide Area WorkFlow (WAWF)
electronic system for submission and
processing of payment requests and
receiving reports under DoD contracts.
WAWF, when fully implemented, will
eliminate paper documents, eliminate
redundant data entry, improve data
accuracy, reduce the number of lost or
misplaced documents, and result in
more timely payments to contractors.
DoD published a proposed rule at 72
FR 45405 on August 14, 2007. Sixteen
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2. Recommendation To Allow
Continued Use of the Governmentwide
Commercial Purchase Card
Comment: One respondent questioned
the functionality of WAWF to support
Government purchase card (GPC)
transactions.
DoD Response: DFARS 232.7002(a)(1)
exempts purchases paid for with a GPC.
Therefore, the requirement to submit
payment requests electronically through
WAWF does not extend to GPC
purchases.
3. Recommendation To Exclude Existing
Foreign Military Sales Contracts
Comment: One respondent expressed
concern that the rule would require
modification of existing foreign military
sales contracts.
DoD Response: In accordance with
FAR 1.108(d), the rule is prospective in
nature, becoming effective for
solicitations issued on or after the
effective date of the rule. It does not
require modification of existing
contracts.
4. Government Not Fully Compliant
Comment: Three respondents
expressed concern that WAWF has not
been fully implemented within DoD.
DoD Response: There are currently
over 145,000 Government users of
WAWF, with new users being added at
the rate of 2,500 per month. All of the
military departments are expanding
their use of WAWF and have targets to
complete deployment in fiscal year
2008. However, DoD recognizes there
are instances where WAWF cannot be
used, such as in a contingency
environment. Paragraph (c)(2) of the
clause at 252.232–7003 provides an
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exception to the use of WAWF for those
DoD locations that are unable to receive
a payment request or provide
acceptance in electronic form.
5. Acceptance Issues
a. Clarification that WAWF includes
receiving reports.
Comment: One respondent
recommended clarifying that WAWF
also includes receipt and acceptance,
not just payment requests, since
receiving reports are part of the payment
process.
DoD Response: The rule has been
amended to clarify that the electronic
submission of payment requests also
includes the electronic submission of
receiving report documentation
necessary to support payment.
Receiving reports are a key part of the
payment process and have an important
and close interrelationship with
payment requests in WAWF.
b. Blanket exception for installations
unable to provide acceptance in WAWF.
Comment: One respondent
recommended a blanket exception for
payments on installation support
contracts where there presently is no
centralized structure in place for
acceptance of items or services in
WAWF.
DoD Response: Paragraph (c)(2) of the
clause at 252.232–7003 contains an
exception to the use of WAWF for those
DoD locations that are unable to provide
acceptance in electronic form. However,
DoD expects that use of this exception
will be rare, since DoD is committed to
full implementation of WAWF by the
end of fiscal year 2008.
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6. Recommendation for the Clause To
Include Payment Instructions
Comment: One respondent
recommended that the contract clause
contain actual payment instructions,
including fill-ins for the information
required by WAWF, such as required
DoDAACs and supplemental e-mail
addresses for the contracting officer’s
representative, the procuring
contracting officer, or other contract
administrators.
DoD Response: The contracting office
will include DoDAACs and
supplemental e-mail addresses within
the contract as necessary, with the
exception of those for the Defense
Contract Audit Agency (DCAA). The
contractor should follow the
instructions in WAWF to determine the
appropriate DCAA office and DoDAAC.
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7. Recommendation To Clarify Who Has
Exception Authority (Procuring
Contracting Officer (PCO) or
Administrative Contracting Officer
(ACO)) for Use of WAWF
Comment: One respondent
recommended clarification in the
contract clause and its prescription to
provide authority for the PCO to grant
exceptions to the use of WAWF at the
time of contract formation. The
determination should be included in
Section G of the contract, eliminating
the requirement for a copy of the ACO’s
determination to be provided with each
payment request.
DoD Response: Prior to award, the
PCO may authorize a contractor to use
an electronic form other than WAWF, in
accordance with DFARS 232.7003(b),
and the authorization will be annotated
in Section G of the contract. After
award, the ACO may authorize (in
writing) the contractor to submit nonelectronic payment requests and
receiving reports when electronic
submission would be unduly
burdensome to the contractor (DFARS
252.232–7003(c)(3)). The requirement
for the contractor to provide a copy of
the ACO’s written authorization with
the payment request is intended to
facilitate processing of the request and
prevent inadvertent rejection of the
paper document.
8. WAWF System Issues
a. Credit invoices cannot process in
WAWF.
Comment: One respondent suggested
that, because the current workload for
negative invoices requires the
submission of paper invoices, the rule
should provide the authority to use
alternative billing arrangements when
WAWF is not suitable or available.
DoD Response: The requirement to
submit payment requests in electronic
form does not extend to credit invoices/
vouchers. WAWF was designed to
comply with requirements for payments
and will not be modified to accept
credits. Any credits due to the
Government on invoices with negative
amounts should be coordinated with the
Defense Finance and Accounting
Service entitlement office.
b. User difficulties.
Comment: One respondent expressed
concern that WAWF is not vendorfriendly for input of documents. There
are too many screens, fields, and steps;
DoD activities do not always input the
required purchase order and
modification information; and invoices
are not paid any faster than when using
the mail system.
DoD Response: Although WAWF
input requires the use of multiple
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11357
screens and fields, the information
required for payment requests remains
in compliance with FAR 32.905,
Payment documentation and process.
Purchase order and modification
information used by WAWF is extracted
from the Electronic Document Access
(EDA) system to populate the WAWF
data screens; the information is not
input to WAWF. Therefore, errors in the
data pulled from the EDA system are not
a limitation of WAWF, but rather an
EDA issue. Further, the decrease in
processing time from submission to
payment is realized in WAWF’s
immediate transmission of a document
from action step to action step.
c. Company-wide computer system
revamp.
Comment: One respondent stated that
it was in the middle of a company-wide
computer system revamp and any
changes at this time would require a
12-month lead time.
DoD Response: The rule is
prospective in nature, becoming
effective for solicitations issued on or
after the effective date of the rule.
Contractors will be expected to make
the system changes necessary to comply
with the provisions of new awards.
However, the rule provides for the use
of an alternate electronic form if
authorized by the contracting officer.
d. Electronic data interchange (EDI)
American National Standards Institute
(ANSI) X.12 Capability.
Comment: One respondent requested
a clear understanding of the EDI ANSI
X.12 interfacing options with DoD.
DoD Response: It is anticipated that
WAWF will support EDI ANSI X.12 into
the future. No changes are being
contemplated.
e. Grant and cooperative agreement
processing capability.
Comment: One respondent
recommended inclusion of nonacquisition instruments (grants and
cooperative agreements).
DoD Response: While use of WAWF
for these instruments will not be
mandated, WAWF Version 3.12
(released October 21, 2007)
accommodates the processing of grant
payments and other transactions.
f. WAWF downtime.
Comment: One respondent expressed
concern that WAWF is frequently not
available.
DoD Response: Statistics maintained
by the WAWF Program Office show that
WAWF availability has been at 99.955
percent for peak hours and 100 percent
for off-peak hours.
g. Processing of 9000 series, contract
data requirements list, and first article
contract line items.
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Comment: One respondent stated that
WAWF does not accept 9000 series,
contract data requirements list, and first
article contract line items, and should
not be mandated until all items may be
processed electronically.
DoD Response: WAWF Version 3.12,
released October 21, 2007,
accommodates the processing of 9000
series, contract data requirements list,
and first article contract line 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 has prepared a final regulatory
flexibility analysis consistent with 5
U.S.C. 604. A copy of the analysis may
be obtained from the point of contact
specified herein. The analysis is
summarized as follows:
The objective of the rule is to fully
automate the payment process,
including receiving reports, to
significantly improve the timeliness of
payments and to reduce DoD’s interest
charges for late payments. The rule
continues DoD’s implementation of the
electronic invoicing requirements of 10
U.S.C. 2227, as added by Section 1008
of the National Defense Authorization
Act for Fiscal Year 2001 (Pub. L. 106–
398).
The DFARS presently identifies three
accepted electronic forms of
transmitting payment requests under
DoD contracts: (1) American National
Standards Institute (ANSI) X.12
Electronic Data Interchange (EDI); (2)
Web Invoicing System (WInS); and (3)
WAWF. ANSI X.12 EDI and WInS
cannot process all DoD payment request
types, nor can they process receiving
reports. In addition, EDI and WInS
information cannot be made available to
all interested Government offices and
organizations. WAWF is the only DoD
system that can process all payment
request types as well as receiving
reports. WAWF keeps historical files
that are readily available for both
contractor and Government use. The use
of WAWF already has contributed
significantly to improving the timeliness
of payments and to DoD’s goal of
reducing interest charges for late
payments.
The rule will still allow a contractor
to submit a payment request through an
electronic means other than WAWF, or
in a non-electronic format, if authorized
by the contracting officer. In addition,
the rule will allow contractors to submit
ANSI X.12 EDI transactions through
WAWF.
Approximately 1,000 small entities
will be required to switch from WInS to
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the WAWF system, used by over 20,000
small entities. Both systems involve
submission of invoices through the
World Wide Web. Approximately 1
hour is needed to learn the WAWF
system. No reporting, recordkeeping, or
compliance records will be required
from small entities. All such records
will be generated by DoD as a byproduct of the use of the required
system.
(1) Payment requests and receiving
reports shall be submitted by facsimile
or conventional mail. * * *
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4. Sections 232.7003 and 232.7004 are
revised to read as follows:
232.7003
Procedures.
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
(a) The accepted electronic form for
submission of payment requests and
receiving reports is Wide Area
WorkFlow (see Web site—https://
wawf.eb.mil/).
(b) If the payment office and the
contract administration office concur,
the contracting officer may authorize a
contractor to submit a payment request
and receiving report using an electronic
form other than Wide Area WorkFlow.
However, with this authorization, the
contractor and the contracting officer
shall agree to a plan, which shall
include a timeline, specifying when the
contractor will transfer to Wide Area
WorkFlow.
(c) For payment of commercial
transportation services provided under a
Government rate tender or a contract for
transportation services, the use of a
DoD-approved electronic third party
payment system or other exempted
vendor payment/invoicing system (e.g.,
PowerTrack, Transportation Financial
Management System, and Cargo and
Billing System) is permitted.
PART 232—CONTRACT FINANCING
232.7004
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
and Appendix F to chapter 2 are
amended as follows:
I 1. The authority citation for 48 CFR
parts 232 and 252 and Appendix F to
subchapter I continues to read as
follows:
I
2. The heading of subpart 232.70 is
revised to read as follows:
I
Subpart 232.70—Electronic
Submission and Processing of
Payment Requests and Receiving
Reports
3. Section 232.7002 is amended by
revising paragraph (a) introductory text,
paragraph (a)(6), the last sentence of
paragraph (b), paragraph (c)
introductory text, and the first sentence
of paragraph (c)(1) to read as follows:
I
232.7002
Policy.
(a) Contractors shall submit payment
requests and receiving reports in
electronic form, except for—
*
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*
*
(6) Cases in which DoD is unable to
receive payment requests or provide
acceptance in electronic form; or
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(b) * * * Scanned documents are
acceptable for processing supporting
documentation other than receiving
reports and other forms of acceptance.
(c) When payment requests and
receiving reports will not be submitted
in electronic form—
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Contract clause.
Except as provided in 232.7002(a),
use the clause at 252.232–7003,
Electronic Submission of Payment
Requests and Receiving Reports, in
solicitations and contracts.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
5. Section 252.212–7001 is amended
by revising paragraph (b)(17) to read as
follows:
I
252.212–7001 Contract Terms and
Conditions Required To Implement Statutes
or Executive Orders Applicable to Defense
Acquisitions of Commercial Items.
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(b) * * *
(17) __252.232–7003, Electronic
Submission of Payment Requests and
Receiving Reports (MAR 2008) (10
U.S.C. 2227).
I 6. Section 252.232–7003 is amended
by revising the section heading, the
clause title and date, and paragraphs
(a)(2), (b), and (c) to read as follows:
252.232–7003 Electronic Submission of
Payment Requests and Receiving Reports.
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(a) * * *
(2) Electronic form means any automated
system that transmits information
electronically from the initiating system to all
affected systems. Facsimile, e-mail, and
scanned documents are not acceptable
electronic forms for submission of payment
requests. However, scanned documents are
acceptable when they are part of a
submission of a payment request made using
Wide Area WorkFlow (WAWF) or another
electronic form authorized by the Contracting
Officer.
(3) 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;
or
(4) DoD makes payment for commercial
transportation services provided under a
Government rate tender or a contract for
transportation services using a DoD-approved
electronic third party payment system or
other exempted vendor payment/invoicing
system (e.g., PowerTrack, Transportation
Financial Management System, and Cargo
and Billing System).
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ELECTRONIC SUBMISSION OF
PAYMENT REQUESTS AND
RECEIVING REPORTS (MAR 2008)
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(b) Except as provided in paragraph (c) of
this clause, the Contractor shall submit
payment requests and receiving reports using
WAWF, in one of the following electronic
formats that WAWF accepts: Electronic Data
Interchange, Secure File Transfer Protocol, or
World Wide Web input. Information
regarding WAWF is available on the Internet
at https://wawf.eb.mil/.
(c) The Contractor may submit a payment
request and receiving report using other than
WAWF only when—
(1) The Contracting Officer authorizes use
of another electronic form. With such an
authorization, the Contractor and the
Contracting Officer shall agree to a plan,
which shall include a timeline, specifying
when the Contractor will transfer to WAWF;
(2) DoD is unable to receive a payment
request or provide acceptance in electronic
form;
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7. Section 252.246–7000 is amended
by revising the clause date and
paragraph (b) to read as follows:
I
252.246–7000 Material Inspection and
Receiving Report.
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*
MATERIAL INSPECTION AND
RECEIVING REPORT (MAR 2008)
*
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(b) Contractor submission of the material
inspection and receiving information
required by Appendix F of the Defense FAR
Supplement by using the Wide Area
WorkFlow (WAWF) electronic form (see
paragraph (b) of the clause at 252.232–7003)
fulfills the requirement for a material
inspection and receiving report (DD Form
250). Two copies of the receiving report
(paper copies of either the DD Form 250 or
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11359
the WAWF report) shall be distributed with
the shipment, in accordance with Appendix
F, Part 4, F–401, Table 1, of the Defense FAR
Supplement.
Appendix F—Material Inspection and
Receiving Report
8. Appendix F to chapter 2 is
amended in Part 3, Section F–306, by
revising paragraph (a) to read as follows:
I
F–306 Invoice instructions.
(a) Contractors shall submit payment
requests and receiving reports in electronic
form, unless an exception in 232.7002
applies. Contractor submission of the
material inspection and receiving
information required by this appendix by
using the Wide Area WorkFlow electronic
form (see paragraph (b) of the clause at
252.232–7003) fulfills the requirement for an
MIRR.
*
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9. Appendix F to chapter 2 is
amended in Part 4, Section F–401, by
revising paragraph (a) to read as follows:
I
F–401 Distribution.
(a) The contractor is responsible for
distributing the DD Form 250, including
mailing and payment of postage. Use of the
Wide Area WorkFlow electronic form
satisfies the distribution requirements of this
section, except for the copies required to
accompany shipment.
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[FR Doc. E8–3947 Filed 2–29–08; 8:45 am]
BILLING CODE 5001–08–P
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Agencies
[Federal Register Volume 73, Number 42 (Monday, March 3, 2008)]
[Rules and Regulations]
[Pages 11356-11359]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3947]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 232 and 252 and Appendix F to Chapter 2
RIN 0750-AF63
Defense Federal Acquisition Regulation Supplement; Mandatory Use
of Wide Area WorkFlow (DFARS Case 2006-D049)
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 require use of the Wide
Area WorkFlow electronic system for submitting and processing payment
requests and receiving reports under DoD contracts. Use of Wide Area
WorkFlow facilitates timely and accurate payments to DoD contractors.
DATES: Effective Date: March 3, 2008.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (CPF), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone 703-602-0326; facsimile
703-602-7887. Please cite DFARS Case 2006-D049.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule requires use of the Wide Area WorkFlow (WAWF)
electronic system for submission and processing of payment requests and
receiving reports under DoD contracts. WAWF, when fully implemented,
will eliminate paper documents, eliminate redundant data entry, improve
data accuracy, reduce the number of lost or misplaced documents, and
result in more timely payments to contractors.
DoD published a proposed rule at 72 FR 45405 on August 14, 2007.
Sixteen respondents submitted comments on the proposed rule. A
discussion of the comments is provided below:
1. Recommendation To Allow Third Party Payment System (TPPS) U.S.
Bank--PowerTrack Transactions
Comment: Eight respondents expressed concern that the rule would no
longer support the use of TPPS, indicating that the rule fails to
acknowledge the unique needs of suppliers who invoice on a transaction
basis, such as those in the express and ground package delivery
industry.
DoD Response: The rule has been amended to permit the use of a DoD-
approved electronic third party payment system or other exempt vendor
payment/invoicing system (such as PowerTrack, Transportation Financial
Management System, and Cargo and Billing System) for payment of
commercial transportation services.
2. Recommendation To Allow Continued Use of the Governmentwide
Commercial Purchase Card
Comment: One respondent questioned the functionality of WAWF to
support Government purchase card (GPC) transactions.
DoD Response: DFARS 232.7002(a)(1) exempts purchases paid for with
a GPC. Therefore, the requirement to submit payment requests
electronically through WAWF does not extend to GPC purchases.
3. Recommendation To Exclude Existing Foreign Military Sales Contracts
Comment: One respondent expressed concern that the rule would
require modification of existing foreign military sales contracts.
DoD Response: In accordance with FAR 1.108(d), the rule is
prospective in nature, becoming effective for solicitations issued on
or after the effective date of the rule. It does not require
modification of existing contracts.
4. Government Not Fully Compliant
Comment: Three respondents expressed concern that WAWF has not been
fully implemented within DoD.
DoD Response: There are currently over 145,000 Government users of
WAWF, with new users being added at the rate of 2,500 per month. All of
the military departments are expanding their use of WAWF and have
targets to complete deployment in fiscal year 2008. However, DoD
recognizes there are instances where WAWF cannot be used, such as in a
contingency environment. Paragraph (c)(2) of the clause at 252.232-7003
provides an
[[Page 11357]]
exception to the use of WAWF for those DoD locations that are unable to
receive a payment request or provide acceptance in electronic form.
5. Acceptance Issues
a. Clarification that WAWF includes receiving reports.
Comment: One respondent recommended clarifying that WAWF also
includes receipt and acceptance, not just payment requests, since
receiving reports are part of the payment process.
DoD Response: The rule has been amended to clarify that the
electronic submission of payment requests also includes the electronic
submission of receiving report documentation necessary to support
payment. Receiving reports are a key part of the payment process and
have an important and close interrelationship with payment requests in
WAWF.
b. Blanket exception for installations unable to provide acceptance
in WAWF.
Comment: One respondent recommended a blanket exception for
payments on installation support contracts where there presently is no
centralized structure in place for acceptance of items or services in
WAWF.
DoD Response: Paragraph (c)(2) of the clause at 252.232-7003
contains an exception to the use of WAWF for those DoD locations that
are unable to provide acceptance in electronic form. However, DoD
expects that use of this exception will be rare, since DoD is committed
to full implementation of WAWF by the end of fiscal year 2008.
6. Recommendation for the Clause To Include Payment Instructions
Comment: One respondent recommended that the contract clause
contain actual payment instructions, including fill-ins for the
information required by WAWF, such as required DoDAACs and supplemental
e-mail addresses for the contracting officer's representative, the
procuring contracting officer, or other contract administrators.
DoD Response: The contracting office will include DoDAACs and
supplemental e-mail addresses within the contract as necessary, with
the exception of those for the Defense Contract Audit Agency (DCAA).
The contractor should follow the instructions in WAWF to determine the
appropriate DCAA office and DoDAAC.
7. Recommendation To Clarify Who Has Exception Authority (Procuring
Contracting Officer (PCO) or Administrative Contracting Officer (ACO))
for Use of WAWF
Comment: One respondent recommended clarification in the contract
clause and its prescription to provide authority for the PCO to grant
exceptions to the use of WAWF at the time of contract formation. The
determination should be included in Section G of the contract,
eliminating the requirement for a copy of the ACO's determination to be
provided with each payment request.
DoD Response: Prior to award, the PCO may authorize a contractor to
use an electronic form other than WAWF, in accordance with DFARS
232.7003(b), and the authorization will be annotated in Section G of
the contract. After award, the ACO may authorize (in writing) the
contractor to submit non-electronic payment requests and receiving
reports when electronic submission would be unduly burdensome to the
contractor (DFARS 252.232-7003(c)(3)). The requirement for the
contractor to provide a copy of the ACO's written authorization with
the payment request is intended to facilitate processing of the request
and prevent inadvertent rejection of the paper document.
8. WAWF System Issues
a. Credit invoices cannot process in WAWF.
Comment: One respondent suggested that, because the current
workload for negative invoices requires the submission of paper
invoices, the rule should provide the authority to use alternative
billing arrangements when WAWF is not suitable or available.
DoD Response: The requirement to submit payment requests in
electronic form does not extend to credit invoices/vouchers. WAWF was
designed to comply with requirements for payments and will not be
modified to accept credits. Any credits due to the Government on
invoices with negative amounts should be coordinated with the Defense
Finance and Accounting Service entitlement office.
b. User difficulties.
Comment: One respondent expressed concern that WAWF is not vendor-
friendly for input of documents. There are too many screens, fields,
and steps; DoD activities do not always input the required purchase
order and modification information; and invoices are not paid any
faster than when using the mail system.
DoD Response: Although WAWF input requires the use of multiple
screens and fields, the information required for payment requests
remains in compliance with FAR 32.905, Payment documentation and
process. Purchase order and modification information used by WAWF is
extracted from the Electronic Document Access (EDA) system to populate
the WAWF data screens; the information is not input to WAWF. Therefore,
errors in the data pulled from the EDA system are not a limitation of
WAWF, but rather an EDA issue. Further, the decrease in processing time
from submission to payment is realized in WAWF's immediate transmission
of a document from action step to action step.
c. Company-wide computer system revamp.
Comment: One respondent stated that it was in the middle of a
company-wide computer system revamp and any changes at this time would
require a 12-month lead time.
DoD Response: The rule is prospective in nature, becoming effective
for solicitations issued on or after the effective date of the rule.
Contractors will be expected to make the system changes necessary to
comply with the provisions of new awards. However, the rule provides
for the use of an alternate electronic form if authorized by the
contracting officer.
d. Electronic data interchange (EDI) American National Standards
Institute (ANSI) X.12 Capability.
Comment: One respondent requested a clear understanding of the EDI
ANSI X.12 interfacing options with DoD.
DoD Response: It is anticipated that WAWF will support EDI ANSI
X.12 into the future. No changes are being contemplated.
e. Grant and cooperative agreement processing capability.
Comment: One respondent recommended inclusion of non-acquisition
instruments (grants and cooperative agreements).
DoD Response: While use of WAWF for these instruments will not be
mandated, WAWF Version 3.12 (released October 21, 2007) accommodates
the processing of grant payments and other transactions.
f. WAWF downtime.
Comment: One respondent expressed concern that WAWF is frequently
not available.
DoD Response: Statistics maintained by the WAWF Program Office show
that WAWF availability has been at 99.955 percent for peak hours and
100 percent for off-peak hours.
g. Processing of 9000 series, contract data requirements list, and
first article contract line items.
[[Page 11358]]
Comment: One respondent stated that WAWF does not accept 9000
series, contract data requirements list, and first article contract
line items, and should not be mandated until all items may be processed
electronically.
DoD Response: WAWF Version 3.12, released October 21, 2007,
accommodates the processing of 9000 series, contract data requirements
list, and first article contract line 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 has prepared a final regulatory flexibility analysis consistent
with 5 U.S.C. 604. A copy of the analysis may be obtained from the
point of contact specified herein. The analysis is summarized as
follows:
The objective of the rule is to fully automate the payment process,
including receiving reports, to significantly improve the timeliness of
payments and to reduce DoD's interest charges for late payments. The
rule continues DoD's implementation of the electronic invoicing
requirements of 10 U.S.C. 2227, as added by Section 1008 of the
National Defense Authorization Act for Fiscal Year 2001 (Pub. L. 106-
398).
The DFARS presently identifies three accepted electronic forms of
transmitting payment requests under DoD contracts: (1) American
National Standards Institute (ANSI) X.12 Electronic Data Interchange
(EDI); (2) Web Invoicing System (WInS); and (3) WAWF. ANSI X.12 EDI and
WInS cannot process all DoD payment request types, nor can they process
receiving reports. In addition, EDI and WInS information cannot be made
available to all interested Government offices and organizations. WAWF
is the only DoD system that can process all payment request types as
well as receiving reports. WAWF keeps historical files that are readily
available for both contractor and Government use. The use of WAWF
already has contributed significantly to improving the timeliness of
payments and to DoD's goal of reducing interest charges for late
payments.
The rule will still allow a contractor to submit a payment request
through an electronic means other than WAWF, or in a non-electronic
format, if authorized by the contracting officer. In addition, the rule
will allow contractors to submit ANSI X.12 EDI transactions through
WAWF.
Approximately 1,000 small entities will be required to switch from
WInS to the WAWF system, used by over 20,000 small entities. Both
systems involve submission of invoices through the World Wide Web.
Approximately 1 hour is needed to learn the WAWF system. No reporting,
recordkeeping, or compliance records will be required from small
entities. All such records will be generated by DoD as a by-product of
the use of the required system.
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 and Appendix F to chapter 2 are
amended as follows:
0
1. The authority citation for 48 CFR parts 232 and 252 and Appendix F
to subchapter I continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 232--CONTRACT FINANCING
0
2. The heading of subpart 232.70 is revised to read as follows:
Subpart 232.70--Electronic Submission and Processing of Payment
Requests and Receiving Reports
0
3. Section 232.7002 is amended by revising paragraph (a) introductory
text, paragraph (a)(6), the last sentence of paragraph (b), paragraph
(c) introductory text, and the first sentence of paragraph (c)(1) to
read as follows:
232.7002 Policy.
(a) Contractors shall submit payment requests and receiving reports
in electronic form, except for--
* * * * *
(6) Cases in which DoD is unable to receive payment requests or
provide acceptance in electronic form; or
* * * * *
(b) * * * Scanned documents are acceptable for processing
supporting documentation other than receiving reports and other forms
of acceptance.
(c) When payment requests and receiving reports will not be
submitted in electronic form--
(1) Payment requests and receiving reports shall be submitted by
facsimile or conventional mail. * * *
* * * * *
4. Sections 232.7003 and 232.7004 are revised to read as follows:
232.7003 Procedures.
(a) The accepted electronic form for submission of payment requests
and receiving reports is Wide Area WorkFlow (see Web site--https://
wawf.eb.mil/).
(b) If the payment office and the contract administration office
concur, the contracting officer may authorize a contractor to submit a
payment request and receiving report using an electronic form other
than Wide Area WorkFlow. However, with this authorization, the
contractor and the contracting officer shall agree to a plan, which
shall include a timeline, specifying when the contractor will transfer
to Wide Area WorkFlow.
(c) For payment of commercial transportation services provided
under a Government rate tender or a contract for transportation
services, the use of a DoD-approved electronic third party payment
system or other exempted vendor payment/invoicing system (e.g.,
PowerTrack, Transportation Financial Management System, and Cargo and
Billing System) is permitted.
232.7004 Contract clause.
Except as provided in 232.7002(a), use the clause at 252.232-7003,
Electronic Submission of Payment Requests and Receiving Reports, in
solicitations and contracts.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Section 252.212-7001 is amended by revising paragraph (b)(17) to
read as follows:
252.212-7001 Contract Terms and Conditions Required To Implement
Statutes or Executive Orders Applicable to Defense Acquisitions of
Commercial Items.
* * * * *
(b) * * *
(17) ----252.232-7003, Electronic Submission of Payment Requests
and Receiving Reports (MAR 2008) (10 U.S.C. 2227).
0
6. Section 252.232-7003 is amended by revising the section heading, the
clause title and date, and paragraphs (a)(2), (b), and (c) to read as
follows:
252.232-7003 Electronic Submission of Payment Requests and Receiving
Reports.
* * * * *
[[Page 11359]]
ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS (MAR
2008)
(a) * * *
(2) Electronic form means any automated system that transmits
information electronically from the initiating system to all
affected systems. Facsimile, e-mail, and scanned documents are not
acceptable electronic forms for submission of payment requests.
However, scanned documents are acceptable when they are part of a
submission of a payment request made using Wide Area WorkFlow (WAWF)
or another electronic form authorized by the Contracting Officer.
* * * * *
(b) Except as provided in paragraph (c) of this clause, the
Contractor shall submit payment requests and receiving reports using
WAWF, in one of the following electronic formats that WAWF accepts:
Electronic Data Interchange, Secure File Transfer Protocol, or World
Wide Web input. Information regarding WAWF is available on the
Internet at https://wawf.eb.mil/.
(c) The Contractor may submit a payment request and receiving
report using other than WAWF only when--
(1) The Contracting Officer authorizes use of another electronic
form. With such an authorization, the Contractor and the Contracting
Officer shall agree to a plan, which shall include a timeline,
specifying when the Contractor will transfer to WAWF;
(2) DoD is unable to receive a payment request or provide
acceptance in electronic form;
(3) 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; or
(4) DoD makes payment for commercial transportation services
provided under a Government rate tender or a contract for
transportation services using a DoD-approved electronic third party
payment system or other exempted vendor payment/invoicing system
(e.g., PowerTrack, Transportation Financial Management System, and
Cargo and Billing System).
* * * * *
0
7. Section 252.246-7000 is amended by revising the clause date and
paragraph (b) to read as follows:
252.246-7000 Material Inspection and Receiving Report.
* * * * *
MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2008)
* * * * *
(b) Contractor submission of the material inspection and
receiving information required by Appendix F of the Defense FAR
Supplement by using the Wide Area WorkFlow (WAWF) electronic form
(see paragraph (b) of the clause at 252.232-7003) fulfills the
requirement for a material inspection and receiving report (DD Form
250). Two copies of the receiving report (paper copies of either the
DD Form 250 or the WAWF report) shall be distributed with the
shipment, in accordance with Appendix F, Part 4, F-401, Table 1, of
the Defense FAR Supplement.
Appendix F--Material Inspection and Receiving Report
0
8. Appendix F to chapter 2 is amended in Part 3, Section F-306, by
revising paragraph (a) to read as follows:
F-306 Invoice instructions.
(a) Contractors shall submit payment requests and receiving
reports in electronic form, unless an exception in 232.7002 applies.
Contractor submission of the material inspection and receiving
information required by this appendix by using the Wide Area
WorkFlow electronic form (see paragraph (b) of the clause at
252.232-7003) fulfills the requirement for an MIRR.
* * * * *
0
9. Appendix F to chapter 2 is amended in Part 4, Section F-401, by
revising paragraph (a) to read as follows:
F-401 Distribution.
(a) The contractor is responsible for distributing the DD Form
250, including mailing and payment of postage. Use of the Wide Area
WorkFlow electronic form satisfies the distribution requirements of
this section, except for the copies required to accompany shipment.
* * * * *
[FR Doc. E8-3947 Filed 2-29-08; 8:45 am]
BILLING CODE 5001-08-P