Environmental Protection Agency Acquisition Regulation (EPAAR) Clause Update for Submission of Invoices, 65328-65331 [2018-27478]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 83, Number 244 (Thursday, December 20, 2018)]
[Proposed Rules]
[Pages 65328-65331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27478]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 1552

[EPA-HQ-OARM-2018-0742; FRL 9987-89-OARM]


Environmental Protection Agency Acquisition Regulation (EPAAR) 
Clause Update for Submission of Invoices

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is revising its 
Submission of Invoices clause to add electronic invoicing requirements. 
In 2019 the EPA will begin using the Invoice Processing Platform (IPP), 
which is a secure web-based service provided by the U.S. Treasury that 
efficiently manages government invoicing.

DATES: Comments must be received on or before February 19, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OARM-2018-0742, at https://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e. on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Thomas Valentino, Policy, Training and 
Oversight Division, Acquisition Policy and Training Branch (3802R), 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, 
DC 20460; telephone number: (202) 564-4522; email address: 
valentino.thomas@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. General Information

    1. Submitting Classified Business Information. Do not submit CBI to 
EPA website https://www.regulations.gov or email. Clearly mark the part 
or all of the information that you claim to be CBI. For CBI information 
in a disk or CD-ROM that you mail to EPA, mark the outside of the disk 
or CD-ROM as CBI, and then identify electronically within the disk or 
CD-ROM the specific information that is claimed as CBI. In addition to 
one complete version of the comment that includes information claimed 
as CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be

[[Page 65329]]

disclosed except in accordance with procedures set forth in 40 CFR part 
2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
    [ssquf] Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
    [ssquf] Follow directions--The Agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) Part or section number.
    [ssquf] Explain why you agree or disagree, suggest alternatives, 
and substitute language for your requested changes.
    [ssquf] Describe any assumptions and provide any technical 
information and/or data that you used.
    [ssquf] If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    [ssquf] Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    [ssquf] Explain your views as clearly as possible, avoiding the use 
of profanity or personal threats.
    [ssquf] Make sure to submit your comments by the comment period 
deadline identified.

II. Background

    The EPA is revising clause 1552.232-70, Submission of Invoices, to 
add electronic invoicing requirements. On September 13, 2018, the EPA 
issued a direct final rule in 83 FR 46418 that in part revised the 
subject clause to incorporate a 1996 class deviation and make minor 
administrative updates. This proposed rule revises the clause again 
since the EPA will begin using the Invoice Processing Platform (IPP) in 
2019, which is a secure web-based service provided by the U.S. Treasury 
that efficiently manages government invoicing. Currently the EPA 
requires contractors and vendors to submit paper invoices, which are 
inefficient and costly. The EPA will also begin using IPP to satisfy 
the requirements of Office of Management and Budget (OMB) Memorandum M-
15-19, Improving Government Efficiency and Saving Taxpayer Dollars 
Through Electronic Invoicing. By changing the subject clause to require 
electronic invoicing, the EPA will reap benefits of efficiency and cost 
that have become ubiquitous in modern commerce, and be in compliance 
with Memorandum M-15-19.

III. Proposed Rule

    The proposed rule proposes to amend EPAAR Part 1552, Solicitation 
Provisions and Contract Clauses, by revising EPAAR Sec.  1552.232-70, 
Submission of Invoices.
    1. EPAAR Sec.  [thinsp]1552.232-70, Submission of Invoices clause 
is revised to provide new electronic invoicing requirements as the EPA 
begins using the IPP electronic-invoicing program in 2019. The clause 
is revised by replacing the current preamble and paragraphs (a) and (b) 
with new paragraphs (a) and (b), that update the old paper invoicing 
instructions to electronic invoicing. Paragraph (g)(5) is being revised 
to remove references to suspended costs, which are not authorized under 
IPP. The ``Note to paragraph (i)'' and ``Note to paragraph (j)'' are 
also being revised to remove references to suspended costs. Finally, 
paragraph (k) and ``Note to paragraph (k)'' are being removed because 
suspended costs are not allowed under IPP, which re-letters the last 
three paragraphs redesignating paragraphs (l) through (n) as paragraphs 
(k) through (m), respectively.

IV. Statutory and Executive Orders Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (E.O.) 12866 (58 FR 51735, October 4, 1993) 
and is therefore not subject to review under the E.O.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
Burden is defined at 5 CFR 1320.3(b).

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute; unless the agency certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities. Small entities include small businesses, small 
organizations, and small governmental jurisdictions. For purposes of 
assessing the impact of this final rule on small entities, ``small 
entity'' is defined as: (1) A small business that meets the definition 
of a small business found in the Small Business Act and codified at 13 
CFR 121.201; (2) a small governmental jurisdiction that is a government 
of a city, county, town, school district or special district with a 
population of less than 50,000; or (3) a small organization that is any 
not-for-profit enterprise which is independently owned and operated and 
is not dominant in its field. After considering the economic impacts of 
this rule on small entities, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
In determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, because the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the proposed rule on small entities'' 5 U.S.C. 503 
and 604. Thus, an agency may certify that a rule will not have a 
significant economic impact on a substantial number of small entities 
if the rule relieves regulatory burden, or otherwise has a positive 
economic effect on all of the small entities subject to the rule. This 
action revises an existing EPAAR clause that will not have a 
significant economic impact on a substantial number of small entities. 
We continue to be interested in the potential impacts of the rule on 
small entities and welcome comments on issues related to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, Local, and Tribal 
governments and the private sector. This rule contains no Federal 
mandates (under the regulatory provisions of the Title II of the UMRA) 
for State, Local, and Tribal governments or the private sector. The 
rule imposes no enforceable duty on any State, Local or Tribal 
governments or the private sector. Thus, the rule is not subject to the 
requirements of sections 202 and 205 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and Local officials in the 
development of regulatory policies that have

[[Page 65330]]

federalism implications. ``Policies that have federalism implications'' 
is defined in the Executive Order to include regulations that have 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' This 
rule does not have federalism implications. It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government as 
specified in Executive Order 13132.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This rule does not have 
tribal implications as specified in Executive Order 13175.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health and Safety Risks'' (62 FR 19885, April 23, 1997), 
applies to any rule that: (1) Is determined to be economically 
significant as defined under E.O. 12886, and (2) concerns an 
environmental health or safety risk that may have a proportionate 
effect on children. This rule is not subject to E.O. 13045 because it 
is not an economically significant rule as defined by Executive Order 
12866, and because it does not involve decisions on environment health 
or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution or Use'' (66 FR 28335 (May 22, 2001), because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995 (NTTAA)

    Section 12(d) (15 U.S.C. 272 note) of the National Technology 
Transfer and Advancement Act of 1995, Public Law 104-113, directs EPA 
to use voluntary consensus standards in its regulatory activities 
unless to do so would be inconsistent with applicable law or otherwise 
impractical. Voluntary consensus standards are technical standards 
(e.g., materials specifications, test methods, sampling procedures and 
business practices) that are developed or adopted by voluntary 
consensus standards bodies. The NTTAA directs EPA to provide Congress, 
through OMB, explanations when the Agency decides not to use available 
and applicable voluntary consensus standards. This action does not 
involve technical standards. Therefore, EPA is not considering the use 
of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (February 16, 1994) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States. EPA has determined that this proposed 
rule will not have disproportionately high and adverse human health or 
environmental effects on minority or low-income populations because it 
does not affect the level of protection provided to human health or the 
environment in the general public.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a major rule may take effect, the agency 
promulgating the rule must submit a rule report, which includes a copy 
of the rule, to each House of the Congress and to the Comptroller 
General of the United States. Section 804(2) defines a ``major rule'' 
as any rule that the Administrator of the Office of Information and 
Regulatory Affairs of the Office of Management and Budget finds has 
resulted in or is likely to result in (1) an annual effect on the 
economy of $100,000,000 or more; (2) a major increase in costs or 
prices for consumers, individual industries, Federal, State, or local 
government agencies, or geographic regions; or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export markets. 
EPA is not required to submit a rule report regarding this action under 
section 801 as this is not a major rule by definition.

List of Subjects in 48 CFR Part 1552

    Environmental protection, Solicitation provisions and contract 
clauses.

    Dated: December 3, 2018.
Kimberly Y. Patrick,
Director, Office of Acquisition Solutions.

    For the reasons set forth in the preamble, EPA proposes to amend 48 
CFR part 1552 as follows:

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. Authority: The authority citation for part 1552 continues to read as 
follows:

    Authority: 5 U.S.C. 301 and 41 U.S.C. 418b.

0
2. Section 1552.232-70 is amended by:
0
a. Revising paragraphs (a), (b), and (g)(5);
0
b. Revising ``Note to paragraph (i)'' and ``Note to paragraph (j)'';
0
c. Removing paragraph (k) and ``Note to paragraph (k)''; and
0
d. Redesignating paragraphs (l) through (n) as paragraphs (k) through 
(m).
    The revisions read as follows:


Sec.  1552.232-70  Submission of invoices.

* * * * *
    (a) Electronic invoicing and the Invoice Processing Platform 
(IPP)--
    (1) Definitions. As used in this clause--
    ``Contract financing payment'' and ``invoice payment'' are defined 
in Federal Acquisition Regulation (FAR) 32.001.
    ``Electronic form'' means an automated system that transmits 
information electronically from the initiating system to all affected 
systems. Facsimile, email, 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 Invoice Processing Platform or another 
electronic form authorized by the Contracting Officer.
    ``Payment request'' means any request for contract financing 
payment or

[[Page 65331]]

invoice payment submitted by the Contractor under this contract.
    (2) (i) Except as provided in paragraph (c) of this clause, the 
Contractor shall submit invoices using the electronic invoicing program 
Invoice Processing Platform (IPP), which is a secure web-based service 
provided by the U.S. Treasury that more efficiently manages government 
invoicing.
    (ii) Under this contract, the following documents are required to 
be submitted as an attachment to the IPP invoice: (This is a fill-in 
for acceptable types of required documentation, such as an SF 1034 and 
1035, or an invoice/self-designed form on company letterhead that 
contains the required information.)
    (iii) The Contractor's Government Business Point of Contact (as 
listed in System for Award Management (SAM)) will receive enrollment 
instructions via email from the IPP. The Contractor must register 
within 3 to 5 days of receipt of such email from IPP.
    (iv) Contractor assistance with enrollment can be obtained by 
contacting the IPP Production Helpdesk via email at 
IPPCustomerSupport@fiscal.treasury.gov or by telephone at (866) 973-
3131.
    (3) If the Contractor is unable to comply with the requirement to 
use IPP for submitting invoices for payment, the Contractor shall 
submit a waiver request in writing to the Contracting Officer. The 
Contractor may submit an invoice using other than IPP only when--
    (i) The Contracting Officer administering the contract for payment 
has determined, in writing, that electronic submission would be unduly 
burdensome to the Contractor; and in such cases, the Contracting 
Officer shall modify the contract to include a copy of the 
Determination; or
    (ii) When the Governmentwide commercial purchase card is used as 
the method of payment.
    (4) The Contractor shall submit any non-electronic payment requests 
using the method or methods specified in Section G of the contract.
    (5) In addition to the requirements of this clause, the Contractor 
shall meet the requirements of the appropriate payment clauses in this 
contract when submitting payment requests.
    (6) Invoices submitted through IPP will be either rejected, or 
accepted and paid, in their entirety, and will not be paid on a partial 
basis.
    (b) The Contractor shall prepare its invoice or request for 
contract financing payment in accordance with FAR 32.905 on the 
prescribed Government forms, or the Contractor may submit self-designed 
forms which contain the required information. Standard Form 1034, 
Public Voucher for Purchases and Services other than Personal, is 
prescribed for used by contractors to show the amount claimed for 
reimbursement. Standard Form 1035, Public Voucher for Purchases and 
Services other than Personal--Continuation Sheet, is prescribed for use 
to furnish the necessary supporting detail or additional information 
required by the Contracting Officer.
* * * * *
    (g) * * *
    (5) Voucher Number--Insert the appropriate serial number of the 
voucher. A separate series of consecutive numbers, beginning with 
Number 1, shall be used by the contractor for each new contract. For an 
adjustment invoice, write ``[invoice number] #Adj'' at the voucher 
number. For a final invoice, put invoice number F. For a completion 
invoice, put invoice number #C.
* * * * *

    Note to paragraph
    (i)--Any costs requiring advance consent by the Contracting 
Officer will be considered improper and will be disallowed, if 
claimed prior to receipt of Contracting Officer consent. Include the 
total cost claimed for the current and cumulative-to-date periods. 
After the total amount claimed, provide summary dollar amounts 
disallowed on the contract as of the date of the invoice. Also 
include an explanation of the changes in cumulative costs disallowed 
by addressing each adjustment in terms of: Voucher number, date, 
dollar amount, source, and reason for the adjustment. Disallowed 
costs should be identified in unallowable accounts in the 
contractor's accounting system.

* * * * *

    Note to paragraph
    (j)--Any costs requiring advance consent by the Contracting 
Officer will be considered improper and will be disallowed, if 
claimed prior to receipt of Contracting Officer consent. Include the 
total cost claimed for the current and cumulative-to-date periods. 
After the total amount claimed, provide summary dollar amounts 
disallowed on the contract as of the date of the invoice. Also 
include an explanation of the changes in cumulative costs disallowed 
by addressing each adjustment in terms of: Voucher number, date, 
dollar amount, source, and reason for the adjustment. Disallowed 
costs should be identified in unallowable accounts in the 
contractor's accounting system.

* * * * *

[FR Doc. 2018-27478 Filed 12-19-18; 8:45 am]
 BILLING CODE 6560-50-P