[Federal Register Volume 63, Number 17 (Tuesday, January 27, 1998)]
[Proposed Rules]
[Page 4074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1909]



[[Page 4073]]

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Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 52



Federal Acquisition Regulation; Evidence of Shipment in Electronic Data 
Interchange (EDI) Transactions; Proposed Rule

  Federal Register / Vol. 63, No. 17 / Tuesday, January 27, 1998 / 
Proposed Rules  

[[Page 4074]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAR Case 97-011]
RIN 9000-AH73


Federal Acquisition Regulation; Evidence of Shipment in 
Electronic Data Interchange (EDI) Transactions

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to facilitate the use of electronic data 
interchange (EDI) transactions and to streamline the payment process 
when supplies are purchased free on board (f.o.b.) destination with 
inspection and acceptance at origin. This regulatory action was not 
subject to Office of Management and Budget review under Executive Order 
12866, dated September 30, 1993. This is not a major rule under 5 
U.S.C. 804.

DATES: Comments should be submitted on or before March 30, 1998 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), 1800 F Street, 
NW, Room 4035, Washington, DC 20405. E-mail comments submitted over 
Internet should be addressed to: [email protected]. Please cite 
FAR case 97-011 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405 (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAR case 97-011.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the clause at FAR 52.247-48 to eliminate 
the current barriers to full implementation of electronic data 
interchange (EDI) in certain contracts awarded on an f.o.b. destination 
basis. Presently, if a contract is awarded on an f.o.b. destination 
basis, and if transportation is accomplished by a common carrier, the 
contractor is required to provide, with the invoice, a signed copy of 
the commercial bill of lading indicating the carriers receipt of the 
supplies or to furnish the information electronically as evidence of 
shipment. Additionally, if transportation is accomplished by other than 
a common carrier or parcel post, the contractor is required to provide, 
with the invoice, a copy of the appropriate delivery document showing 
receipt at the destination specified in the contract. To eliminate 
current barriers to transmission of signed bills of lading, or other 
required delivery documentation through EDI, this rule eliminates any 
requirement for contractors to provide evidence of shipment. However, 
contractors will be required to retain, and to make available to the 
Government for review as necessary, the evidence of shipment 
documentation for a period of 4 years after contract completion.

B. Regulatory Flexibility Act

    This proposed 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., because the rule 
applies to a limited number of EDI transactions, e.g., when supplies 
are purchased f.o.b. destination, but inspection and acceptance will be 
at origin. Therefore, the rule is estimated to affect only a small 
number of entities, both large and small. For DoD, less than 1 percent 
(129) of all f.o.b. destination supply contracts over $25,000 (14,664) 
are likely to be affected by this rule. Therefore, an Initial 
Regulatory Flexibility Analysis has not been performed. Comments from 
small entities concerning the affected FAR subpart will be considered 
in accordance with 5 U.S.C. 610 of the Act. Such comments must be 
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 
97-011), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to 
apply because the proposed rule contains information collection 
requirements. It is estimated that the revision to the FAR clause at 
52.247-48 will slightly increase, by 45 hours, to 74,795 hours, the 
annual paperwork burden associated with FAR Part 47 and related 
provisions and clauses approved by the Office of Management and Budget 
(OMB) under OMB Control Number 9000-0061.

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: January 21, 1998.
Jeremy F. Olson,
Acting Director, Federal Acquisition Policy Division.
    Therefore, it is proposed that 48 CFR Part 52 be amended as set 
forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 52.247-48 is revised to read as follows:


52.247-48  F.o.b. Destination--Evidence of Shipment.

    As prescribed in 47.305-4(c), insert the following clause:

F.O.B. Destination--Evidence of Shipment (Date)

    (a) If this contract is awarded on a free on board (f.o.b.) 
destination basis, the Contractor--
    (1) Shall not submit an invoice for payment until the supplies 
covered by the invoice have been shipped; and
    (2) Shall retain, and make available to the Government for 
review as necessary, the following evidence of shipment 
documentation for a period of 4 years after completion of the 
contract:
    (i) If transportation is accomplished by common carrier, a 
signed copy of the commercial bill of lading for the supplies 
covered by the Contractor's invoice, indicating the carrier's intent 
to ship the supplies to the destination specified in the contract.
    (ii) If transportation is accomplished by parcel post, a copy of 
the certificate of mailing.
    (iii) If transportation is accomplished by other than common 
carrier or parcel post, a copy of the delivery document showing 
receipt at the destination specified in the contract.
    (b) The Contractor is not required to submit evidence of 
shipment documentation with its invoice.

(End of clause)

[FR Doc. 98-1909 Filed 1-26-98; 8:45 am]
BILLING CODE 6820-EP-P