[Federal Register Volume 63, Number 136 (Thursday, July 16, 1998)]
[Rules and Regulations]
[Pages 38330-38331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18816]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 532 and 552

[APD 2800.12A, CHGE 80]
RIN 3090-AG


General Services Administration Acquisition Regulation; 10 Day 
Payment Clause for Certain Federal Supply Service Contracts and 
Authorized Price Lists Under Federal Supply Service Schedule Contracts

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule adopted as final with changes.

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SUMMARY: The General Services Administration is adopting as final, with 
a change, the interim rule published in the Federal Register at 63 FR 
12965, March 16, 1998. This final rule amends the General Services 
Administration Acquisition Regulation (GSAR) to include Internet-based 
invoice processing, in addition to electronic data interchange (EDI) 
and electronic funds transfer (EFT), as an accepted electronic commerce 
(EC) transaction. This rule also amends the GSAR to allow contractors 
under the Federal Supply Service (FSS) multiple award schedule (MAS) 
program to print and distribute contract pricelists without prior 
written approval from the contracting officer.

DATES: Effective Date: July 16, 1998.

FOR FURTHER INFORMATION CONTACT:
Gloria Sochon, GSA Acquisition Policy Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

    The interim rule amended GSAR Part 532 and 552 to provide for 
payment of invoices in 10 days under Federal Supply Service (FSS) 
contracts in the Stock, Special Order, or Schedules Programs for 
contractors who agree to process orders and invoices electronically 
using implementation conventions provided by GSA. The rule defined full 
cycle EC and provided contract clauses establishing the conditions for 
10 day payment of invoices.
    No public comments were received in response to the interim GSAR 
rule. The interim GSAR rule is being converted to final with a change 
to add Internet-based invoice processing to the accepted EC 
transactions. This change will increase the base of contractors 
eligible to participate in full cycle EC.
    In addition, GSA is removing the requirement that contractors under 
the FSS MAS program obtain written approval from the contracting 
officer prior to printing or distributing contract pricelists. This 
change will allow FSS MAS contractors to begin selling their products 
through their schedule contracts, and make the contracts available for 
Government agencies to use, as quickly as possible. In the past, FSS 
MAS contracts all started on a common date. FSS awarded many contracts 
in advance of the common start date, allowing time between award and 
the start date for the process of approving the pricelists. Many 
schedule contracts now have a variable contract period, effective on 
the date of award. The process of approving pricelists only delays the 
ability of contractors and customers to begin using the established 
contracts on that date. Other contractual remedies, including price 
adjustment or termination, sufficiently protect the Government's 
interest in the event that a contractor issues an incorrect pricelist. 
GSA expects this rule will have no significant cost or administrative 
burden on contractors or offerors. The rule simplifies administrative 
processes by removing the requirement to seek and obtain Government 
approval to print or distribute a contract pricelist. It also 
eliminates the costs involved in seeking and obtaining the approval.

B. Executive Order 12866

    This regulatory action was not subject to Office of Management and 
Budget Review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    The GSA certifies that this final rule will not 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 provides that the Government will make payment in 10 days from 
receipt of a proper invoice when the contractor agrees to full cycle 
EC. Because not all contractors are EDI capable, full cycle EC is not 
mandatory. Contractors who do not agree to the terms will be paid under 
standard Prompt Payment Act (31 U.S.C. 3903) procedures and suffer no 
adverse consequences. Contractors who agree to full cycle EC will 
benefit from receiving payment more quickly and being able to 
streamline administrative procedures and costs associated with 
processing contract orders.
    The change to allow contractors under the FSS MAS program to print 
and distribute contract pricelists without prior written approval from 
the contracting officer is not a significant revision requiring public 
comments and therefore the Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., does not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping or information collection 
requirements, or otherwise collect information from offerors, 
contractors, or members of the public that require approval of the 
Office of Management and Budget under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 532 and 552

    Government procurement.

    Accordingly, the interim rule amending 48 CFR Parts 532 and 552 
which was published at 63 FR 12965, March 16, 1998, is adopted as a 
final rule with the following changes:
    1. The authority citation for 48 CFR Parts 532 and 552 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c).

PART 532--CONTRACT FINANCING

    2. Section 532.902 is amended by revising the introductory 
paragraph to read as follows:


532.902  Definitions.

    ``Full cycle electronic commerce'' means the use of electronic data 
interchange (EDI), Internet-based invoice processing, and electronic 
funds transfer (EFT):
* * * * *
    3. Section 532.905 is amended by revising paragraph (c)(2) to read 
as follows:


532.905  Invoice payments.

* * * * *
    (c) * * *
* * * * *
    (2) The 10 day payment terms apply to each order that meet all the 
following conditions:
    (i) FSS places the order using EDI in accordance with the Trading 
Partner Agreement.
    (ii) The contractor submit EDI invoices in accordance with the 
Trading Partner Agreement or invoices through the GSA Finance Center 
Internet-based invoice process.

[[Page 38331]]

    (iii) A GSA Finance Center pays the invoices using EFT.
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 552.232-25 is amended by revising the clause date and 
deviation citation and revising paragraph (a)(2)(ii) to read as 
follows:


552.232-25  Prompt payment.

* * * * *

PROMPT PAYMENT (JUL 1998) (DEVIATION FAR 52.232-25)

* * * * *
    (a) Invoice payments.
* * * * *
    (2) * * *
* * * * *
    (ii) The Contractor must generate and submit to the Government 
valid EDI invoices (transaction set 810) or submit invoices through 
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
* * * * *
    5. Section 552.232-70 is amended by revising the clause date and 
paragraph (b)(2) to read as follows:


552.232-70  Invoice payments.

* * * * *

INVOICE PAYMENTS (JUL 1998)

* * * * *
    (b) * * *
* * * * *
    (2) The Contractor must generate and submit to the Government 
valid EDI invoices (transaction set 810) or submit invoices through 
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
* * * * *
    6. Section 552.238-74 is amended by revising the clause data and 
paragraph (b) to read as follows:


552.238-74  Submission and distribution of authorized FSS schedule 
pricelists.

* * * * *

SUBMISSION AND DISTRIBUTION OF AUTHORIZED FSS SCHEDULE PRICELISTS (JUL 
1998)

* * * * *
    (b) The Contracting Officer will return one copy of the 
Authorized FSS Schedule Pricelist to the Contractor with the 
notification of contract award.
* * * * *
    Dated: July 8, 1998.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 98-18816 Filed 7-15-98; 8:45 am]
BILLING CODE 6820-61-M