[Federal Register Volume 62, Number 138 (Friday, July 18, 1997)]
[Rules and Regulations]
[Pages 38475-38476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18944]
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GENERAL SERVICES ADMINISTRATION
48 CFR Part 552
[APD 2800.12A, CHGE 75]
RIN 3090-AG30
Acquisition Regulation; Remittance of Industrial Funding Fee in
U.S. Dollars Under Federal Supply Schedules Program
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Final rule.
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SUMMARY: The General Services Administration Acquisition Regulation
(GSAR) is amended to revise the contract clauses at 552.238-72 and
552.238-77 to require remittance of the industrial funding fee under
Federal Supply Schedules (FSS) program in U.S. dollars, define the
basis for converting the value of sales in foreign currency, update
references to termination for cause, and clarify reporting and
remittance requirements.
DATES: Effective Date July 18, 1997.
FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy
Division, (202) 208-6726.
SUPPLEMENTARY INFORMATION:
A. Background
The General Services Administration's FSS program charges ordering
activities an industrial funding fee (IFF) to recoup the program's
operating costs. The IFF is included in contract prices, collected by
contractors, and remitted quarterly to GSA. Some contractors under the
International Federal Supply Schedule have remitted the IFF in foreign
currency. This practice causes many problems, particularly impeding
GSA's ability to meet U.S. Department of the Treasury requirements to
record deposits timely. Checks in foreign currency require significant
processing, often taking several weeks to complete the deposit. The
government loses interest on the funds during this delay.
The revised contract clauses require payment of the IFF in U.S.
dollars. It also establishes standards for conversion to address
fluctuations in rates of exchange. Contractors will use the U.S.
Department of the Treasury, ``Treasury Reporting Rates of Exchange,''
in effect on the last day of the reporting period to convert the value
of sales in foreign currency to U.S. dollars. In addition, the
references to termination for cause are revised, as different clauses
now apply in different situations. It also clarifies reporting and
remittance requirements by defining the close-out report, defining how
the contractor is to provide supporting information when reimbursing
GSA by check, and updating information on electronic funds transfers.
B. Executive Order 12866
This rule was submitted to the Office of Management and Budget
(OMB) under Executive Order 12866.
C. Regulatory Flexibility Act
This final rule is not expected 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. The rule requires
only that FSS contractors use U.S. dollars to report the value of sales
and to remit the IFF to GSA. The only additional administrative burden
on contractors is the need to calculate the conversion of sales made in
foreign currency once each quarter. Most of the contractors affected by
this rule will be foreign entities, with their place of business
located outside of the U.S.
D. Paperwork Reduction Act
The revised clause at 552.238-72, Contractor's Report of Sales,
contains an information collection requirement subject to the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.). However, the revisions to the
clause made by this rule do not affect the information collection
requirement which was approved previously by OMB and assigned control
number 3090-0121.
The revised clause at 552.238-77, Industrial Funding Fee, contains
an information collection requirement
[[Page 38476]]
subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).
However, the revisions to the clause made by this rule do not affect
the information collection requirement previously approved under GSA's
blanket approval under control number 3090-0250 from OMB for
information collections with a zero burden estimate.
E. Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule under 5 U.S.C. 804. This rule was
submitted to Congress and GAO under 5 U.S.C. 804.
F. Determination to Issue a Final Rule
GSA expects this rule will have no significant cost or
administrative burden on contractors or offerors. The only additional
administrative burden on contractors is the need to calculate the
conversion of sales made in foreign currency once each quarter.
Therefore, GSA is promulgating this final rule without prior
opportunity for public comment.
List of Subjects in 48 CFR Part 552
Government procurement.
Accordingly, 48 CFR 552 is amended as follows:
1. The authority citation for 48 CFR Part 552 continues to read as
follows:
Authority: 40 U.S.C. 486(c).
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Section 552.238-72 is amended by revising the clause date;
revising paragraph (a); redesignating paragraphs (b), (c), and (d) as
(c), (d), and (e) respectively; adding a new paragraph (b);
redesignating paragraph (e) in Alternate I as paragraph (f) and
revising the reference ``paragraph (e)'' in Alternate I introductory
text to read ``paragraph (f)''; and revising the Alternate I date to
read ``May 1997''; and revising paragraphs (c) and (d) to read as
follows:
552.238-72 Contractor's report of sales.
* * * * *
CONTRACTOR'S REPORT OF SALES (MAY 1997)
(a) The Contractor must furnish quarterly the dollar value (in
U.S. dollars and rounded to the nearest whole dollar) of all sales
under the contract during the preceding 3-month period, to include
any partial month. The dollar value of a sale is the price paid by
the schedule user for products and services on a schedule contract
delivery order, as recorded by the Contractor. The reported contract
sales value must include the industrial funding fee (see Clause
552.238-77). The Contractor must prepare and submit a separate
report for each National Stock Number (NSN), Special Item Number
(SIN), or subitem, unless otherwise specified, on GSA Form 72A.
(b) The Contractor must convert the total value of any sales
made in foreign currency to U.S. dollars using the ``Treasury
Reporting Rates of Exchange,'' issued by the U.S. Department of
Treasury, Financial Management Service. The Contractor must use the
issue of the Treasury report in effect on the last day of the
contract quarter. The report is available from: Department of the
Treasury, Financial Management Service, International Funds Branch,
3700 East-West Highway, PGCII, Room 5A19, Hyattsville, MD 20782,
Telephone: (202) 874-7994, Internet: http://www.ustreas.gov/
treasury/bureaus/finman/intn.html.
(c) The report is due in the office specified below or specified
at the time of award 30 days following the completion of the
reporting period. The Contractor must provide a close-out report
within 120 days after the expiration date of the contract. This
close-out report must cover all sales not shown in the final
quarterly report and reconcile all errors and credits. If the
Contractor reported all contract sales and reconciled all errors and
credits on the final quarterly report, then show zero sales in the
close-out report.
(d) The Government reserves the right to inspect without further
notice, such records of the Contractor as pertain to sales under
this contract. Willful failure or refusal to furnish the required
reports, or falsification thereof, constitutes sufficient cause for
terminating the contract for cause under the termination provisions
of this contract.
* * * * *
3. Section 552.238-77 is amended by revising the clause date;
revising paragraph (a); redesignating paragraphs (b), (c), and (d) as
(c), (d), and (e) respectively; adding a new paragraph (b); revising
newly designated paragraphs (c), introductory text and (c)(2); and
revising newly designated paragraph (e) to read as follows:
552.238-77 Industrial funding fee.
* * * * *
INDUSTRIAL FUNDING FEE (MAY 1997)
(a) The Contractor must pay the Federal Supply Service, GSA, an
Industrial Funding Fee (IFF), in U.S. dollars, at the end of each
contract quarter. The Contractor must remit the IFF at the same time
the GSA Form 72A, Contractor's Report of Sales, is submitted under
clause 552.238-72, Contractor's Report of Sales. The IFF equals
________________* of total sales reported on GSA Form 72A. The IFF
reimburses the GSA Federal Supply Service for the costs of operating
the Federal Supply Schedules Program and recoups its operating costs
from ordering activities. Offerors should include the IFF in the
prices submitted with their offer. The fee is included in the award
price(s) and reflected in the total amount charged to ordering
activities.
(b) The Contractor must remit any monies due as a result of the
close-out report required by clause 552.238-72 at the time the
close-out report is submitted to GSA.
(c) The IFF amount due must be paid by check or, electronic
funds transfer through the Automated Clearing House (ACH), to the
``General Services Administration.'' If the payment involves
multiple special item numbers or contracts, the Contractor may
consolidate the IFFs into one payment. To ensure that the payment is
credited properly, the Contractor should identify the check or
electronic transmission as an ``Industrial Funding Fee'' and include
the following information: contract number(s); report amount(s); and
report period(s). If the Contractor makes payment by check, provide
this information on either the check, check stub, or remittance
material. The GSA Form 72A is not remittance material.
* * * * *
(2) If the IFF payment is made by electronic funds transfer
through ACH, the Contractor must call GSA, Financial Information
Control Branch, Receivables, Collections and Sales Section (6BCDR)
at (contracting officer to insert phone number) to make
arrangements.
* * * * *
(e) Failure to submit sales reports, falsification of sales
reports, and/or failure to pay the IFF in a timely manner may result
in termination or cancellation of this contract. Willful failure or
refusal to furnish the required reports, falsification of sales
reports, or failure to make timely payment of the IFF constitutes
sufficient cause for terminating the contract for cause under the
termination provisions of this contract.
(End of Clause)
* * * * *
Dated: May 15, 1997.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy.
[FR Doc. 97-18944 Filed 7-17-97; 8:45 am]
BILLING CODE 6820-61-P