[Federal Register: July 13, 2005 (Volume 70, Number 133)]
[Proposed Rules]
[Page 40279-40280]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jy05-33]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 52
[FAR Case 2004-031]
RIN 9000-AK24
Federal Acquisition Regulation; Fast Payment Procedures
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) by revising fast payment
procedures. The proposed revision permits, but does not require, fast
payment when invoices and/or outer shipping containers are not marked
``Fast Pay'' provided the contract includes the ``Fast Payment
Procedure'' clause. As highlighted in the proposed clause, if the
clause is in the contract, the invoices will no longer be rejected, as
is the current practice. Instead, they will be paid using either fast
payment or normal payment procedures. In addition, the proposed
revision deletes the requirement for marking invoices ``No Receiving
Report Prepared.''
DATES: Interested parties should submit comments in writing on or
before September 12, 2005, to be considered in the formulation of a
final rule.
ADDRESSES: Submit comments identified by FAR case 2004-031 by any of
the following methods:
Federal eRulemaking Portal:
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov. Follow the instructions for submitting
comments.
Agency Web Site:
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the
FAR case number to submit comments.
E-mail: farcase.2004-031@gsa.gov. Include FAR case 2004-
031 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2004-
031 in all correspondence related to this case. All comments received
will be posted without change to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm
, including any personal information
provided.
FOR FURTHER INFORMATION CONTACT The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Mr. Jeremy Olson, at (202) 501-3221.
Please cite FAR case 2004-031.
SUPPLEMENTARY INFORMATION:
A. Background
This FAR case was initiated at the request of the DoD Acting Deputy
Chief Financial Officer (CFO), OUSD (Comptroller), who believes FAR
52.213-1, Fast Payment Procedure, should be revised to correct a
deficiency found during an internal review, namely, that many invoices
were not prominently marked ``FAST PAY.'' The CFO recommends that the
FAR be revised to:
Address both hard copy invoices and electronic invoices so
that they may be accepted by the payment office if the ``fast payment''
clause is annotated manually or electronically in the contract record;
and
Delete the requirement for marking invoices ``NO RECEIVING
REPORT PREPARED.''
Requirement to mark invoices and outer shipping containers ``Fast
Pay.'' The current requirement to display ``Fast Pay'' prominently on
the invoices and outer shipping containers causes payment problems.
This requirement forces payment offices to reject invoices when the
invoices and/or the outer shipping containers are not marked ``Fast
Pay,'' even though the contract contains the fast payment clause. The
Councils believe that the FAR should be revised to provide the payment
office flexibility to make fast payments when invoices and/or outer
shipping containers are not marked ``Fast Pay.'' The proposed language
permits, but does not require, fast payment when invoices and/or outer
shipping containers are not marked ``Fast Pay'' provided the contract
includes the ``Fast Payment Procedure'' clause. Under the proposed
language, when the payment office decides to not process invoices as
``Fast Pay'' because the proper markings were not present, the payment
date will be the payment date that would have applied had the ``Fast
Pay Procedures'' clause not been in the contract. In this manner, an
unmarked invoice will not be rejected. It is important to note that
this change does not eliminate the requirement for the contractor to
annotate an invoice ``Fast Pay;'' the contractor remains at risk that
fast payment procedures will not be applied unless the invoice is
annotated accordingly.
Requirement to include the statement ``No Receiving Report
Prepared.'' The current requirement to mark invoices ``No Receiving
Report Prepared'' also causes payment problems as discussed above. In
addition, the marking is misleading. A receiving report may be prepared
for the contract, but if so, under fast pay procedures it is normally
still in processing channels when the invoice arrives at the payment
office. However, if a receiving report is not prepared, it is still
imperative that the invoice includes sufficient information to
facilitate follow-up verification that the item was received. The
current FAR and the proposed revision both include a requirement for
such information on the invoice. The difference is simply that the
proposed revision does not require the statement ``No Receiving Report
Prepared'' on the invoice.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because it will have a beneficial, but small, impact.
[[Page 40280]]
Small businesses which fail to follow the fast payment clause
instructions to mark the invoice ``FAST PAY'', will have their invoices
rejected, which means they would not be paid until they send in a
corrected invoice. The clause revisions mean the invoices would not
have to be automatically rejected. An Initial Regulatory Flexibility
Analysis has, therefore, not been performed. We invite comments from
small businesses and other interested parties. The Councils will
consider comments from small entities concerning the affected FAR Part
52 in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 601, et seq. (FAR case
2004-031), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 52
Government procurement.
Dated: July 5, 2005.
Gerald Zaffos,
Deputy Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 52 as
set forth below:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1. The authority citation for 48 CFR part 52 is revised to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Amend section 52.213-1 by revising the date of the clause and
paragraphs (c)(1)(ii), (c)(3), and (e) to read as follows:
52.213-1 Fast Payment Procedure.
* * * * *
FAST PAYMENT PROCEDURE (DATE)
* * * * *
(c) * * *
(1) * * *
(ii) Display prominently on the invoice ``FAST PAY.'' Invoices not
prominently marked ``Fast Pay'' via manual or electronic means may be
accepted by the payment office for fast payment. If the payment office
declines to make fast payment, the Contractor shall be paid in
accordance with procedures applicable to invoices to which the Fast
Payment clause does not apply.
* * * * *
(3) If this contract, order, or blanket purchase agreement requires
the preparation of a receiving report, the Contractor shall either--
(i) Submit the receiving report on the prescribed form with the
invoice; or
(ii) Include the following information on the invoice:
(A) Shipment number.
(B) Mode of shipment.
(C) At line item level--
(1) National stock number and/or manufacturer's part number;
(2) Unit of measure;
(3) Ship-To Point;
(4) Mark-For Point, if in the contract; and
(5) FEDSTRIP/MILSTRIP document number, if in the contract.
* * * * *
(e) Fast pay container identification. The Contractor shall mark
all outer shipping containers ``FAST PAY.'' When outer shipping
containers are not marked ``Fast Pay,'' the payment office may make
fast payment. If the payment office declines to make fast payment, the
Contractor shall be paid in accordance with procedures applicable to
invoices to which the Fast Payment clause does not apply.
(End of clause)
[FR Doc. 05-13617 Filed 7-12-05; 8:45 am]