Department of the Treasury Acquisition Regulation; Internet Payment Platform, 40302-40305 [2012-16407]
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
corrected promptly upon becoming
aware of such a violation; and
(iii) Certifies that its own transmission
equipment is not at fault for any pattern
or trend of complaints.
(5) Commercials locally inserted by a
cable operator or other MVPD’s agent—
safe harbor. With respect to
commercials locally inserted, which for
the purposes of this provision are
commercial advertisements added to a
programming stream for the cable
operator or other MVPD by a third party
after it has been received from the
programmer but prior to or at the time
of transmission to viewers, a cable
operator or other MVPD may
demonstrate compliance with the ATSC
A/85 RP by relying on the third party
local inserter’s certification of
compliance with the ATSC A/85 RP,
provided that:
(i) The cable operator or other MVPD
has no reason to believe that the
certification is false;
(ii) The cable operator or other MVPD
certifies that its own transmission
equipment is not at fault for any pattern
or trend of complaints; and
(iii) The cable operator or other MVPD
performs a spot check, as defined in
§ 76.607(a)(3)(iv)(A), (B), (D), and (E), on
the programming at issue in response to
an enforcement inquiry concerning a
pattern or trend of complaints regarding
commercials inserted by that third
party.
(6) Instead of demonstrating
compliance pursuant to paragraphs
(a)(2) through (5) of this section, a cable
operator or other MVPD may
demonstrate compliance with paragraph
(a)(1) of this section in response to an
enforcement inquiry prompted by a
pattern or trend of complaints by
demonstrating actual compliance with
ATSC A/85 RP with regard to the
commercial advertisements that are the
subject of the inquiry, and certifying
that its own transmission equipment is
not at fault for any such pattern or trend
of complaints.
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Note to § 76.607(a): For additional
information regarding this requirement, see
Implementation of the Commercial
Advertisement Loudness Mitigation (CALM)
Act, FCC 11–182.
(b) [Reserved]
[FR Doc. 2012–16165 Filed 7–6–12; 8:45 am]
BILLING CODE 6712–01–P
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DEPARTMENT OF THE TREASURY
48 CFR Parts 1002, 1032, and 1052
RIN 1505–AC41
Department of the Treasury
Acquisition Regulation; Internet
Payment Platform
Office of the Procurement
Executive, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury is amending the Department of
the Treasury Acquisition Regulation
(DTAR) to implement use of the Internet
Payment Platform, a centralized
electronic invoicing and payment
information system, and to change the
definition of bureau to reflect the
consolidation on July 21, 2011 of the
Office of Thrift Supervision with the
Office of the Comptroller of the
Currency. This final rule follows
publication of a February 23, 2012,
notice of proposed rulemaking. After
careful consideration of the public
comments, the Department is adopting
the proposed rulemaking without
change.
SUMMARY:
DATES:
Effective date: August 8, 2012.
FOR FURTHER INFORMATION CONTACT:
Ronald Backes, Director, Acquisition
Management, Office of the Procurement
Executive, at (202) 622–5930.
SUPPLEMENTARY INFORMATION:
I. Background and Proposed Rule
The Federal Acquisition Regulation
(FAR) sets forth the uniform regulation
for the procurement of supplies and
services by Federal departments and
agencies (title 48, chapter 1, of the Code
of Federal Regulations (CFR)). The
Department of the Treasury Acquisition
Regulations, which supplement the
FAR, are codified at 48 CFR chapter 10.
On July 5, 2011, the Department
announced that it will implement the
Internet Payment Platform (IPP) no later
than the end of fiscal year 2012; with all
new payment requests in FY2013
processed using the IPP. The Internet
Payment Platform (IPP) is a secure Webbased electronic invoicing and payment
system that processes vendor payment
data electronically, either through a
Web-based portal or electronic
submission, and automates the routing
and approval workflow within an
agency.
The IPP is provided by the
Department of the Treasury’s Financial
Management Service through its fiscal
agent, the Federal Reserve Bank of
Boston at no cost to vendors or
government departments and agencies
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adopting the platform. The IPP benefits
agencies by eliminating the need to file
and store paper payment
documentation; reducing the time of
agency personnel researching and
answering payment status questions by
providing vendor and department-wide
visibility into contract payments.
IPP benefits vendors by reducing time
to payment, creating a standard set of
electronic data to submit payment
requests to the Federal government;
reducing costs from having multiple
processes and requirements; reducing
paper and postage costs, improving cash
management by eliminating the time
delays associated with submitting and
routing paper; and increasing
transparency in the payment processes.
The Department will support vendor
transition from paper-based payment
processes to IPP through a series of
webinar and video training on various
aspects of the application, including
how to view purchase orders, submit
invoices, retrieve payment information,
set notification preferences, and add
users to IPP accounts. The IPP
application includes a ‘‘Collector User
Guide’’ on vendor landing page.
Treasury also operates customer support
services email and toll free numbers
during business hours, Monday through
Friday 8 a.m.–6:30 p.m. Eastern Time.
On February 23, 2012 (77 FR 10714)
the Department published a proposed
rule that would add a new subpart
1032.70—Electronic Submission and
Processing of Payment Requests to
establish the IPP. The Department
published a correction to the proposed
rule on March 5, 2012 (77 FR 13069).
The proposed rule prescribed policies
and procedures for electronic
submission and processing of payment
requests. With limited exceptions, the
proposed provisions would establish
that after October 1, 2012, Treasury will
require and contractors will submit
payment requests electronically. The
rule also proposed a waiver of its
provisions and proposed the text of the
IPP contract clause.
This proposed rule also included
nonsubstantive, technical changes to
update the DTAR definition of ‘‘bureau’’
and would add ‘‘IPP’’ to the DTAR list
of abbreviations.
II. This Final Rule
In its February 23, 2012, proposed
rule, the Department solicited public
comments on all aspects of the proposal.
The comment period closed on April 23,
2012 and eight comments were
received. All of the comments were
from private citizens and law school
students. This section sets out
significant comments raised by the
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commenters and the Department’s
responses to these comments. As set
forth below, the Department has
considered the comments and is
adopting the proposed rule without
change.
Public Comments and Department
Response
One commenter suggested that the
Department should make electronic
submission of payments optional for a
period of one to two years in order to
assess its impact on supplier diversity.
The commenter asserted that this would
enable the Department to conduct
targeted outreach and to take remedial
steps before mandating electronic
submission, in the event a negative
effect on supplier diversity is observed.
Another commenter suggested
extending the compliance date of the
rule until 2013.
The potential exists that, for
unforeseen reasons, there may be a
small number of entities that may be
unable to utilize the IPP upon
implementation. For this reason, the
Department included the waiver
provisions, which will provide ample
opportunity for impacted businesses to
seek a waiver and if granted, to continue
paper-based invoicing procedures.
Therefore, the Department is not
adopting this change.
Another commenter stated that the
IPP should support a longer payment
history than 18 months. The commenter
noted that the IPP should maintain
payment data for at least two years
based on the need for contractors to
retain records for tax purposes.
The payment history feature in IPP is
intended to provide a convenient
reference, not to relieve contractors of
existing record keeping requirements.
IPP permits contractors to download
records for this purpose. The
Department considers an 18 month
payment history sufficient to fulfill the
purpose for which the feature is
provided, and therefore is not adopting
this change.
One commenter opined that the
adoption of the IPP needs to be
accompanied by an increase in funding
for and focus on cyber security. That
commenter further stated that the nature
of the IPP’s format for data transfer
makes the need for proper cyber
security to be in place before the
widespread implementation of the IPP
even more critical. The commenter also
inquired about the source code for the
IPP.
The Department shares the
commenter’s concerns about cyber
security and affirms that it is committed
to making every effort to protect the
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integrity of the information in the
system. The commenter’s suggestions,
however, are outside of the scope of this
rulemaking and cannot be addressed in
this final rule.
Another commenter suggested that
the Department should further support
its conclusion that the impact on small
entities will be minimal. This
commenter stated that the Department
should undertake further analysis about
the economic impact on small entities
before proceeding with the rulemaking.
In the February 23, 2012, proposed
rule, pursuant to the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), the
Department certified that the rule, if
adopted, would not have a significant
economic impact on a substantial
number of small entities and solicited
comments on the impact that the rule
would have on small entities. No
comments were received about the
impact of the rule on entities of any
size. Notwithstanding the commenter’s
suggestion that further analysis be
undertaken, the Department continues
to believe that the IPP implementation
does not have a significant economic
impact on small entities. As explained
in section III of this preamble, the move
from manual, paper-based processing to
electronic processing will not require
significant costs. The IPP only requires
a computer and Internet access, which
all entities that seek to contract with the
Treasury Department must use in order
to learn of contracting opportunities and
obtain solicitations. In addition, the
Department expects that small entities
that have been using paper-based
processing will benefit from the speed
and efficiency of the IPP. Therefore, in
the absence of any comments that
address the impact or demonstrate a
significant economic impact of the rule,
the Department is not conducting
further analysis at this time.
One commenter suggested that the
rule should specify what constitutes an
‘‘undue burden’’ sufficient to waive its
provisions. Another commenter
suggested that the undue burden waiver
provides an amorphous standard that
may undermine the objectives of the
rule.
The Department considers the
implementation of the waiver
provisions, including time to transition
to electronic payment and undue
burden, to allow ample opportunity for
impacted businesses to make a case for
continuing paper-based invoicing
procedures. Indeed, the Department
does not expect that transition to the IPP
will impose an undue burden on any
contractor, but has included the waiver
provision to provide for any unforeseen
difficulties that might occur. Because
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the Department cannot predict what
circumstances, if any, might create the
need for waiver, it cannot articulate a
more specific waiver standard. If the
Department in fact receives a significant
number of waiver requests, it will
determine if additional changes need to
be implemented in the system or in the
policy. If appropriate, the Department
may provide further clarification about
the circumstances and criteria for
waiver provisions, including time to
transition to electronic payment and
undue burden. For these reasons, the
Department is not adopting the
suggestions to revise the waiver
provision.
One commenter suggested that the
rule should provide for the clear
preservation of IPP-generated electronic
records, so that they will be available in
the event of a Freedom of Information
Act request. Specifically, the commenter
suggested that the rule be amended to
include either: A provision requiring
agencies to preserve IPP-generated
electronic records for a set period of
time; a provision requiring agency heads
to include IPP-generated electronic
records within their required record
management plans under the Federal
Records Act; or a provision requiring
the National Archives and Records
Administration to amend 36 CFR part
1236 to clearly require that IPPgenerated documents be preserved
under agency record management plans.
The Department appreciates the
commenter’s interest in preserving
federal records, and notes that the
Federal Records Act requires it to retain
IPP records regardless of whether or not
they are covered by 36 CFR part 1236.
The suggestions, however, are outside
the scope of this rulemaking and are not
adopted in this final rule.
Accordingly, the Department is
adopting the proposed rule, as
corrected, without further change.
III. Other Matters
Regulatory Planning and Review
This rule is not a significant
regulatory action as defined in section
3(f) of Executive Order 12866. Therefore
a regulatory assessment is not required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. chapter 6) generally requires
agencies to conduct an initial regulatory
flexibility analysis and a final regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
It is hereby certified that this rule will
not have a significant economic impact
on a substantial number of small
entities. The IPP will benefit vendors by
reducing time to payment, creating a
standard set of electronic data to submit
payment requests to the federal
government; reducing costs associated
with adhering to multiple processes and
requirements for different federal
agencies; reducing paper and postage
costs, improving cash management by
eliminating the time delays associates
with submitting and routing paper; and
increasing transparency in the payment
processes. The rule is intended to
support the implementation of the IPP
to streamline the payment processes
associated with government contracts
and agreements.
Treasury contracts with more than
4,000 small businesses annually. This
rule is expected to impact all small
businesses that contract with Treasury.
While Treasury anticipates that a
significant number of small businesses
will be impacted, the economic impact
is minimal, and outweighed by the
economic benefits of IPP. An initial cost
to small businesses in terms of changes
to manual, paper-based invoicing
processes is expected to be recouped by
small businesses within a short-term
through more efficient submission and
reporting of invoices and payments and
more timely payments. No additional
reporting or recordkeeping requirements
for small businesses result from this
rule. Staff experienced with the
submission of paper-based payment
requests will need to learn the process
for submitting electronic payment
requests. New compliance and reporting
requirements are not anticipated, as
government and vendor staff will be
able to access data and reports directly
through the IPP.
This rule is related to, but not in
conflict with, following federal rules:
• 31 CFR part 208 requires that most
federal payments be made
electronically, subject to certain waivers
established in the rule.
• The Prompt Payment rule at 5 CFR
part 1315 requires vendors to submit
Electronic Funds Transfer (EFT)
information and a Taxpayer
Identification Number (TIN) as part of a
proper invoice, unless agency
procedures provide otherwise. Late
interest penalties do not apply if the
vendor has failed to submit this
information.
• 48 CFR parts 13, 15, 32 and 52,
addresses the use of EFT for federal
contract payments and also provides for
the collection of banking information
from vendors. In particular, the FAR
EFT rule provides EFT contract clauses
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that agencies should use in their
contracts with government vendors
requiring them to receive payments
electronically.
This rule would be implemented in
such a manner to complement these
rules. One comment was received that
suggested that further analysis is
necessary, however no comments were
received that suggested the economic
impact would be significant (see section
II.) Accordingly, the undersigned hereby
certifies that this rule will not have a
significant economic impact on a
substantial number of small entities.
Paperwork Reduction Act
The information collections contained
in this rule have been previously
approved by the Office of Management
and Budget under the Paperwork
Reduction Act (44 U.S.C. 3501, et seq.)
and assigned OMB control numbers
1505–0081; 1505–0080; and 1505–0107.
Under the Paperwork Reduction Act, an
agency may not conduct or sponsor and
a person is not required to respond to
a collection of information unless it
displays a valid OMB control number.
Unfunded Mandates Reform Act
Section 202 of the Unfunded
Mandates Reform Act of 1995, 2 U.S.C.
1532 (UMRA), requires that the agency
prepare a budgetary impact statement
before promulgating any rule likely to
result in a federal mandate that may
result in the expenditure by state, local,
and tribal governments, in the aggregate,
or by the private sector, of $100 million
or more in any one year. If a budgetary
impact statement is required, section
205 of UMRA also requires the agency
to identify and consider a reasonable
number of regulatory alternatives before
promulgating the rule. It has been
determined that the rule will not result
in expenditures by state, local, and
tribal governments, in the aggregate, or
by the private sector, of $100 million or
more in any one year.
List of Subjects in 48 CFR Parts 1002,
1032, and 1052
Government procurement.
Accordingly, the Department of the
Treasury amends 48 CFR chapter 10 as
follows:
1002.101
Definitions.
Bureau means any one of the
following Treasury organizations:
(1) Alcohol and Tobacco Tax and
Trade Bureau (TTB);
(2) Bureau of Engraving & Printing
(BEP);
(3) Bureau of Public Debt (BPD);
(4) Departmental Offices (DO);
(5) Financial Crimes Enforcement
Network (FinCEN);
(6) Financial Management Service
(FMS);
(7) Office of the Inspector General
(OIG);
(8) Internal Revenue Service (IRS);
(9) Office of the Comptroller of the
Currency (OCC);
(10) Special Inspector General for the
Troubled Asset Relief Program
(SIGTARP);
(11) Treasury Inspector General for
Tax Administration (TIGTA); or
(12) United States Mint.
■ 3. Section 1002.70 is amended by
adding the abbreviation of IPP in
alphabetical order to read as follows:
1002.70
Abbreviations.
*
*
*
*
*
IPP Internet Payment Platform
*
*
*
*
*
PART 1032—CONTRACT FINANCING
4. The authority citation for part 1032
continues to read as follows:
■
Authority: 41 U.S.C. 418b.
5. Add subpart 1032.70 to read as
follows:
■
Subpart 1032.70—Electronic
Submission and Processing of
Payment Requests
Sec.
1032.7000
1032.7001
1032.7002
1032.7003
Scope of subpart.
Definitions.
Policy.
Contract clause.
Subpart 1032.70—Electronic
Submission and Processing of
Payment Requests
1032.7000
Scope of subpart.
This subpart prescribes policies and
procedures for electronic submission
and processing of payment requests.
1032.7001
Definitions.
PART 1002—DEFINITIONS OF WORDS
AND TERMS
1. The authority citation for part 1002
continues to read as follows:
‘‘Payment request,’’ as used in this
subpart, is defined in the clause at
1052.232–7003, Electronic Submission
of Payment Requests.
1032.7002
■
Authority: 41 U.S.C. 418b.
2. Section 1002.101 is revised to read
as follows:
■
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Policy.
(a) Contracts awarded after October 1,
2012, shall require the electronic
submission of payment requests, except
for—
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(1) Purchases paid for with a
Government-wide commercial purchase
card;
(2) Classified contracts or purchases
when electronic submission and
processing of payment requests could
compromise classified information or
national security;
(b) Where a contract otherwise
requires the electronic submission of
invoices, the Contracting Officer may
authorize alternate procedures only if
the Contracting Officer makes a written
determination that:
(1) The Department of the Treasury is
unable to receive electronic payment
requests or provide acceptance
electronically;
(2) The contractor has demonstrated
that electronic submission would be
unduly burdensome; or
(3) The contractor is in the process of
transitioning to electronic submission of
payment requests, but needs additional
time to complete such transition.
Authorizations granted on this basis
must specify a date by which the
contractor will transition to electronic
submission.
(c) Except as provided in paragraphs
(a) and (b) of this section, Treasury
officials shall process electronic
payment submissions through the
Treasury Internet Payment Platform or
successor system.
(d) If the requirement for electronic
submission of payment requests is
waived under paragraph (a)(2) or
paragraph (b) of this section, the
contract or alternate payment
authorization, as applicable, shall
specify the form and method of payment
request submission.
1032.7003
Except as provided in 1032.7002(a),
use the clause at 1052.232–7003,
Electronic Submission of Payment
Requests—Internet Payment Platform, in
solicitations issued and contracts
awarded after October 1, 2012.
PART 1052—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
6. The authority citation for part 1052
continues to read as follows:
■
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Authority: 41 U.S.C. 418b.
7. Add section 1052.232–7003 to read
as follows:
■
1052.232–7003 Electronic submission of
payment requests.
As prescribed in 1032.7003, use the
following clause:
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ELECTRONIC SUBMISSION OF
PAYMENT REQUESTS (DATE TBD)
FOR FURTHER INFORMATION CONTACT:
(a) Definitions. As used in this clause—
(1) ‘‘Payment request’’ means a bill,
voucher, invoice, or request for contract
financing payment with associated
supporting documentation. The payment
request must comply with the requirements
identified in FAR 32.905(b), ‘‘Payment
documentation and process’’ and the
applicable Payment clause included in this
contract.
(2) [Reserved]
(b) Except as provided in paragraph (c) of
this clause, the Contractor shall submit
payment requests electronically using the
Internet Payment Platform (IPP). Information
regarding IPP is available on the Internet at
www.ipp.gov. Assistance with enrollment can
be obtained by contacting the IPP Production
Helpdesk via email ippgroup@bos.frb.org or
phone (866) 973–3131.
(c) The Contractor may submit payment
requests using other than IPP only when the
Contracting Officer authorizes alternate
procedures in writing.
(d) If alternate payment procedures are
authorized, the Contractor shall include a
copy of the Contracting Officer’s written
authorization with each payment request.
SUPPLEMENTARY INFORMATION:
(End of clause)
Dated: June 12, 2012.
Thomas A. Sharpe, Jr.,
Senior Procurement Executive, Office of the
Procurement Executive.
[FR Doc. 2012–16407 Filed 7–6–12; 8:45 am]
BILLING CODE 4810–25–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 111207737–2141–02]
RIN 0648–XC093
Contract clause.
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Fisheries of the Exclusive Economic
Zone Off Alaska; Pelagic Shelf
Rockfish in the Western Regulatory
Area of the Gulf of Alaska
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
AGENCY:
NMFS is prohibiting directed
fishing for pelagic shelf rockfish in the
Western Regulatory Area of the Gulf of
Alaska (GOA). This action is necessary
to prevent exceeding the 2012 total
allowable catch (TAC) of pelagic shelf
rockfish in the Western Regulatory Area
of the GOA.
DATES: Effective 1200 hrs, Alaska local
time (A.l.t.), July 5, 2012, through 2400
hrs, A.l.t., December 31, 2012.
SUMMARY:
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Steve Whitney, 907–586–7269.
NMFS
manages the groundfish fishery in the
GOA exclusive economic zone
according to the Fishery Management
Plan for Groundfish of the Gulf of
Alaska (FMP) prepared by the North
Pacific Fishery Management Council
under authority of the MagnusonStevens Fishery Conservation and
Management Act. Regulations governing
fishing by U.S. vessels in accordance
with the FMP appear at subpart H of 50
CFR part 600 and 50 CFR part 679.
The 2012 TAC of pelagic shelf
rockfish in the Western Regulatory Area
of the GOA is 409 metric tons (mt) as
established by the final 2012 and 2013
harvest specifications for groundfish of
the GOA (77 FR 15194, March 14, 2012).
In accordance with § 679.20(d)(1)(i),
the Administrator, Alaska Region,
NMFS (Regional Administrator), has
determined that the 2012 TAC of pelagic
shelf rockfish in the Western Regulatory
Area of the GOA will soon be reached.
Therefore, the Regional Administrator is
establishing a directed fishing
allowance of 389 mt, and is setting aside
the remaining 20 mt as bycatch to
support other anticipated groundfish
fisheries. In accordance with
§ 679.20(d)(1)(iii), the Regional
Administrator finds that this directed
fishing allowance has been reached.
Consequently, NMFS is prohibiting
directed fishing for pelagic shelf
rockfish in the Western Regulatory Area
of the GOA.
After the effective date of this closure
the maximum retainable amounts at
§ 679.20(e) and (f) will apply at all times
during a trip.
Classification
This action responds to the best
available information recently obtained
from the fishery. The acting Assistant
Administrator for Fisheries, NOAA
(AA), finds good cause to waive the
requirement to provide prior notice and
opportunity for public comment
pursuant to the authority set forth at 5
U.S.C. 553(b)(B) as such requirement is
impracticable and contrary to the public
interest. This requirement is
impracticable and contrary to the public
interest because it would prevent NMFS
from responding to the most recent
fisheries data in a timely fashion and
would delay the closure of directed
fishing for pelagic shelf rockfish in the
Western Regulatory Area of the GOA.
NMFS was unable to publish a notice
providing time for public comment
because the most recent, relevant data
only became available as of June 29,
2012.
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]]>Agencies
[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Rules and Regulations]
[Pages 40302-40305]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16407]
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DEPARTMENT OF THE TREASURY
48 CFR Parts 1002, 1032, and 1052
RIN 1505-AC41
Department of the Treasury Acquisition Regulation; Internet
Payment Platform
AGENCY: Office of the Procurement Executive, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury is amending the Department of
the Treasury Acquisition Regulation (DTAR) to implement use of the
Internet Payment Platform, a centralized electronic invoicing and
payment information system, and to change the definition of bureau to
reflect the consolidation on July 21, 2011 of the Office of Thrift
Supervision with the Office of the Comptroller of the Currency. This
final rule follows publication of a February 23, 2012, notice of
proposed rulemaking. After careful consideration of the public
comments, the Department is adopting the proposed rulemaking without
change.
DATES: Effective date: August 8, 2012.
FOR FURTHER INFORMATION CONTACT: Ronald Backes, Director, Acquisition
Management, Office of the Procurement Executive, at (202) 622-5930.
SUPPLEMENTARY INFORMATION:
I. Background and Proposed Rule
The Federal Acquisition Regulation (FAR) sets forth the uniform
regulation for the procurement of supplies and services by Federal
departments and agencies (title 48, chapter 1, of the Code of Federal
Regulations (CFR)). The Department of the Treasury Acquisition
Regulations, which supplement the FAR, are codified at 48 CFR chapter
10.
On July 5, 2011, the Department announced that it will implement
the Internet Payment Platform (IPP) no later than the end of fiscal
year 2012; with all new payment requests in FY2013 processed using the
IPP. The Internet Payment Platform (IPP) is a secure Web-based
electronic invoicing and payment system that processes vendor payment
data electronically, either through a Web-based portal or electronic
submission, and automates the routing and approval workflow within an
agency.
The IPP is provided by the Department of the Treasury's Financial
Management Service through its fiscal agent, the Federal Reserve Bank
of Boston at no cost to vendors or government departments and agencies
adopting the platform. The IPP benefits agencies by eliminating the
need to file and store paper payment documentation; reducing the time
of agency personnel researching and answering payment status questions
by providing vendor and department-wide visibility into contract
payments.
IPP benefits vendors by reducing time to payment, creating a
standard set of electronic data to submit payment requests to the
Federal government; reducing costs from having multiple processes and
requirements; reducing paper and postage costs, improving cash
management by eliminating the time delays associated with submitting
and routing paper; and increasing transparency in the payment
processes.
The Department will support vendor transition from paper-based
payment processes to IPP through a series of webinar and video training
on various aspects of the application, including how to view purchase
orders, submit invoices, retrieve payment information, set notification
preferences, and add users to IPP accounts. The IPP application
includes a ``Collector User Guide'' on vendor landing page. Treasury
also operates customer support services email and toll free numbers
during business hours, Monday through Friday 8 a.m.-6:30 p.m. Eastern
Time.
On February 23, 2012 (77 FR 10714) the Department published a
proposed rule that would add a new subpart 1032.70--Electronic
Submission and Processing of Payment Requests to establish the IPP. The
Department published a correction to the proposed rule on March 5, 2012
(77 FR 13069). The proposed rule prescribed policies and procedures for
electronic submission and processing of payment requests. With limited
exceptions, the proposed provisions would establish that after October
1, 2012, Treasury will require and contractors will submit payment
requests electronically. The rule also proposed a waiver of its
provisions and proposed the text of the IPP contract clause.
This proposed rule also included nonsubstantive, technical changes
to update the DTAR definition of ``bureau'' and would add ``IPP'' to
the DTAR list of abbreviations.
II. This Final Rule
In its February 23, 2012, proposed rule, the Department solicited
public comments on all aspects of the proposal. The comment period
closed on April 23, 2012 and eight comments were received. All of the
comments were from private citizens and law school students. This
section sets out significant comments raised by the
[[Page 40303]]
commenters and the Department's responses to these comments. As set
forth below, the Department has considered the comments and is adopting
the proposed rule without change.
Public Comments and Department Response
One commenter suggested that the Department should make electronic
submission of payments optional for a period of one to two years in
order to assess its impact on supplier diversity. The commenter
asserted that this would enable the Department to conduct targeted
outreach and to take remedial steps before mandating electronic
submission, in the event a negative effect on supplier diversity is
observed. Another commenter suggested extending the compliance date of
the rule until 2013.
The potential exists that, for unforeseen reasons, there may be a
small number of entities that may be unable to utilize the IPP upon
implementation. For this reason, the Department included the waiver
provisions, which will provide ample opportunity for impacted
businesses to seek a waiver and if granted, to continue paper-based
invoicing procedures. Therefore, the Department is not adopting this
change.
Another commenter stated that the IPP should support a longer
payment history than 18 months. The commenter noted that the IPP should
maintain payment data for at least two years based on the need for
contractors to retain records for tax purposes.
The payment history feature in IPP is intended to provide a
convenient reference, not to relieve contractors of existing record
keeping requirements. IPP permits contractors to download records for
this purpose. The Department considers an 18 month payment history
sufficient to fulfill the purpose for which the feature is provided,
and therefore is not adopting this change.
One commenter opined that the adoption of the IPP needs to be
accompanied by an increase in funding for and focus on cyber security.
That commenter further stated that the nature of the IPP's format for
data transfer makes the need for proper cyber security to be in place
before the widespread implementation of the IPP even more critical. The
commenter also inquired about the source code for the IPP.
The Department shares the commenter's concerns about cyber security
and affirms that it is committed to making every effort to protect the
integrity of the information in the system. The commenter's
suggestions, however, are outside of the scope of this rulemaking and
cannot be addressed in this final rule.
Another commenter suggested that the Department should further
support its conclusion that the impact on small entities will be
minimal. This commenter stated that the Department should undertake
further analysis about the economic impact on small entities before
proceeding with the rulemaking.
In the February 23, 2012, proposed rule, pursuant to the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), the Department certified that
the rule, if adopted, would not have a significant economic impact on a
substantial number of small entities and solicited comments on the
impact that the rule would have on small entities. No comments were
received about the impact of the rule on entities of any size.
Notwithstanding the commenter's suggestion that further analysis be
undertaken, the Department continues to believe that the IPP
implementation does not have a significant economic impact on small
entities. As explained in section III of this preamble, the move from
manual, paper-based processing to electronic processing will not
require significant costs. The IPP only requires a computer and
Internet access, which all entities that seek to contract with the
Treasury Department must use in order to learn of contracting
opportunities and obtain solicitations. In addition, the Department
expects that small entities that have been using paper-based processing
will benefit from the speed and efficiency of the IPP. Therefore, in
the absence of any comments that address the impact or demonstrate a
significant economic impact of the rule, the Department is not
conducting further analysis at this time.
One commenter suggested that the rule should specify what
constitutes an ``undue burden'' sufficient to waive its provisions.
Another commenter suggested that the undue burden waiver provides an
amorphous standard that may undermine the objectives of the rule.
The Department considers the implementation of the waiver
provisions, including time to transition to electronic payment and
undue burden, to allow ample opportunity for impacted businesses to
make a case for continuing paper-based invoicing procedures. Indeed,
the Department does not expect that transition to the IPP will impose
an undue burden on any contractor, but has included the waiver
provision to provide for any unforeseen difficulties that might occur.
Because the Department cannot predict what circumstances, if any, might
create the need for waiver, it cannot articulate a more specific waiver
standard. If the Department in fact receives a significant number of
waiver requests, it will determine if additional changes need to be
implemented in the system or in the policy. If appropriate, the
Department may provide further clarification about the circumstances
and criteria for waiver provisions, including time to transition to
electronic payment and undue burden. For these reasons, the Department
is not adopting the suggestions to revise the waiver provision.
One commenter suggested that the rule should provide for the clear
preservation of IPP-generated electronic records, so that they will be
available in the event of a Freedom of Information Act request.
Specifically, the commenter suggested that the rule be amended to
include either: A provision requiring agencies to preserve IPP-
generated electronic records for a set period of time; a provision
requiring agency heads to include IPP-generated electronic records
within their required record management plans under the Federal Records
Act; or a provision requiring the National Archives and Records
Administration to amend 36 CFR part 1236 to clearly require that IPP-
generated documents be preserved under agency record management plans.
The Department appreciates the commenter's interest in preserving
federal records, and notes that the Federal Records Act requires it to
retain IPP records regardless of whether or not they are covered by 36
CFR part 1236. The suggestions, however, are outside the scope of this
rulemaking and are not adopted in this final rule.
Accordingly, the Department is adopting the proposed rule, as
corrected, without further change.
III. Other Matters
Regulatory Planning and Review
This rule is not a significant regulatory action as defined in
section 3(f) of Executive Order 12866. Therefore a regulatory
assessment is not required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. chapter 6) generally
requires agencies to conduct an initial regulatory flexibility analysis
and a final regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements, unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities.
[[Page 40304]]
It is hereby certified that this rule will not have a significant
economic impact on a substantial number of small entities. The IPP will
benefit vendors by reducing time to payment, creating a standard set of
electronic data to submit payment requests to the federal government;
reducing costs associated with adhering to multiple processes and
requirements for different federal agencies; reducing paper and postage
costs, improving cash management by eliminating the time delays
associates with submitting and routing paper; and increasing
transparency in the payment processes. The rule is intended to support
the implementation of the IPP to streamline the payment processes
associated with government contracts and agreements.
Treasury contracts with more than 4,000 small businesses annually.
This rule is expected to impact all small businesses that contract with
Treasury. While Treasury anticipates that a significant number of small
businesses will be impacted, the economic impact is minimal, and
outweighed by the economic benefits of IPP. An initial cost to small
businesses in terms of changes to manual, paper-based invoicing
processes is expected to be recouped by small businesses within a
short-term through more efficient submission and reporting of invoices
and payments and more timely payments. No additional reporting or
recordkeeping requirements for small businesses result from this rule.
Staff experienced with the submission of paper-based payment requests
will need to learn the process for submitting electronic payment
requests. New compliance and reporting requirements are not
anticipated, as government and vendor staff will be able to access data
and reports directly through the IPP.
This rule is related to, but not in conflict with, following
federal rules:
31 CFR part 208 requires that most federal payments be
made electronically, subject to certain waivers established in the
rule.
The Prompt Payment rule at 5 CFR part 1315 requires
vendors to submit Electronic Funds Transfer (EFT) information and a
Taxpayer Identification Number (TIN) as part of a proper invoice,
unless agency procedures provide otherwise. Late interest penalties do
not apply if the vendor has failed to submit this information.
48 CFR parts 13, 15, 32 and 52, addresses the use of EFT
for federal contract payments and also provides for the collection of
banking information from vendors. In particular, the FAR EFT rule
provides EFT contract clauses that agencies should use in their
contracts with government vendors requiring them to receive payments
electronically.
This rule would be implemented in such a manner to complement these
rules. One comment was received that suggested that further analysis is
necessary, however no comments were received that suggested the
economic impact would be significant (see section II.) Accordingly, the
undersigned hereby certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
The information collections contained in this rule have been
previously approved by the Office of Management and Budget under the
Paperwork Reduction Act (44 U.S.C. 3501, et seq.) and assigned OMB
control numbers 1505-0081; 1505-0080; and 1505-0107. Under the
Paperwork Reduction Act, an agency may not conduct or sponsor and a
person is not required to respond to a collection of information unless
it displays a valid OMB control number.
Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532 (UMRA), requires that the agency prepare a budgetary impact
statement before promulgating any rule likely to result in a federal
mandate that may result in the expenditure by state, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year. If a budgetary impact statement is
required, section 205 of UMRA also requires the agency to identify and
consider a reasonable number of regulatory alternatives before
promulgating the rule. It has been determined that the rule will not
result in expenditures by state, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more in any one
year.
List of Subjects in 48 CFR Parts 1002, 1032, and 1052
Government procurement.
Accordingly, the Department of the Treasury amends 48 CFR chapter
10 as follows:
PART 1002--DEFINITIONS OF WORDS AND TERMS
0
1. The authority citation for part 1002 continues to read as follows:
Authority: 41 U.S.C. 418b.
0
2. Section 1002.101 is revised to read as follows:
1002.101 Definitions.
Bureau means any one of the following Treasury organizations:
(1) Alcohol and Tobacco Tax and Trade Bureau (TTB);
(2) Bureau of Engraving & Printing (BEP);
(3) Bureau of Public Debt (BPD);
(4) Departmental Offices (DO);
(5) Financial Crimes Enforcement Network (FinCEN);
(6) Financial Management Service (FMS);
(7) Office of the Inspector General (OIG);
(8) Internal Revenue Service (IRS);
(9) Office of the Comptroller of the Currency (OCC);
(10) Special Inspector General for the Troubled Asset Relief
Program (SIGTARP);
(11) Treasury Inspector General for Tax Administration (TIGTA); or
(12) United States Mint.
0
3. Section 1002.70 is amended by adding the abbreviation of IPP in
alphabetical order to read as follows:
1002.70 Abbreviations.
* * * * *
IPP Internet Payment Platform
* * * * *
PART 1032--CONTRACT FINANCING
0
4. The authority citation for part 1032 continues to read as follows:
Authority: 41 U.S.C. 418b.
0
5. Add subpart 1032.70 to read as follows:
Subpart 1032.70--Electronic Submission and Processing of Payment
Requests
Sec.
1032.7000 Scope of subpart.
1032.7001 Definitions.
1032.7002 Policy.
1032.7003 Contract clause.
Subpart 1032.70--Electronic Submission and Processing of Payment
Requests
1032.7000 Scope of subpart.
This subpart prescribes policies and procedures for electronic
submission and processing of payment requests.
1032.7001 Definitions.
``Payment request,'' as used in this subpart, is defined in the
clause at 1052.232-7003, Electronic Submission of Payment Requests.
1032.7002 Policy.
(a) Contracts awarded after October 1, 2012, shall require the
electronic submission of payment requests, except for--
[[Page 40305]]
(1) Purchases paid for with a Government-wide commercial purchase
card;
(2) Classified contracts or purchases when electronic submission
and processing of payment requests could compromise classified
information or national security;
(b) Where a contract otherwise requires the electronic submission
of invoices, the Contracting Officer may authorize alternate procedures
only if the Contracting Officer makes a written determination that:
(1) The Department of the Treasury is unable to receive electronic
payment requests or provide acceptance electronically;
(2) The contractor has demonstrated that electronic submission
would be unduly burdensome; or
(3) The contractor is in the process of transitioning to electronic
submission of payment requests, but needs additional time to complete
such transition. Authorizations granted on this basis must specify a
date by which the contractor will transition to electronic submission.
(c) Except as provided in paragraphs (a) and (b) of this section,
Treasury officials shall process electronic payment submissions through
the Treasury Internet Payment Platform or successor system.
(d) If the requirement for electronic submission of payment
requests is waived under paragraph (a)(2) or paragraph (b) of this
section, the contract or alternate payment authorization, as
applicable, shall specify the form and method of payment request
submission.
1032.7003 Contract clause.
Except as provided in 1032.7002(a), use the clause at 1052.232-
7003, Electronic Submission of Payment Requests--Internet Payment
Platform, in solicitations issued and contracts awarded after October
1, 2012.
PART 1052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
6. The authority citation for part 1052 continues to read as follows:
Authority: 41 U.S.C. 418b.
0
7. Add section 1052.232-7003 to read as follows:
1052.232-7003 Electronic submission of payment requests.
As prescribed in 1032.7003, use the following clause:
ELECTRONIC SUBMISSION OF PAYMENT REQUESTS (DATE TBD)
(a) Definitions. As used in this clause--
(1) ``Payment request'' means a bill, voucher, invoice, or
request for contract financing payment with associated supporting
documentation. The payment request must comply with the requirements
identified in FAR 32.905(b), ``Payment documentation and process''
and the applicable Payment clause included in this contract.
(2) [Reserved]
(b) Except as provided in paragraph (c) of this clause, the
Contractor shall submit payment requests electronically using the
Internet Payment Platform (IPP). Information regarding IPP is
available on the Internet at www.ipp.gov. Assistance with enrollment
can be obtained by contacting the IPP Production Helpdesk via email
ippgroup@bos.frb.org or phone (866) 973-3131.
(c) The Contractor may submit payment requests using other than
IPP only when the Contracting Officer authorizes alternate
procedures in writing.
(d) If alternate payment procedures are authorized, the
Contractor shall include a copy of the Contracting Officer's written
authorization with each payment request.
(End of clause)
Dated: June 12, 2012.
Thomas A. Sharpe, Jr.,
Senior Procurement Executive, Office of the Procurement Executive.
[FR Doc. 2012-16407 Filed 7-6-12; 8:45 am]
BILLING CODE 4810-25-P
