[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Rules and Regulations]
[Pages 70291-70292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33521]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 97-10; FAR Case 97-011; Item IX]
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: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule amending 
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 on a free on board (f.o.b.) 
destination basis with inspection and acceptance at origin.

EFFECTIVE DATE: February 16, 1999.

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 Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-10, FAR case 97-011.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule revises the clause at FAR 52.247-48 to facilitate 
the use of EDI for submission of invoices under contracts awarded on an 
f.o.b. destination basis with inspection and acceptance at origin. The 
rule eliminates requirements for contractors to provide evidence of 
shipment with invoices for payment under such contracts. However, 
contractors are required to retain, and to make available to the 
Government for review as necessary, the evidence of shipment 
documentation for a period of 3 years after final payment under the 
contract.
    A proposed rule was published on January 27, 1998 (63 FR 4074). Six 
sources submitted comments in response to the proposed rule. All 
comments were considered in the development of the final rule.
    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.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify 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., because the rule applies to a 
limited number of contracts, i.e., contracts for the purchase of 
supplies on an f.o.b. destination basis with inspection and acceptance 
at origin. Therefore, the rule is estimated to affect only a small 
number of entities, both large and small.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply 
because the final rule contains information collection requirements. 
Accordingly, a revised paperwork burden under OMB Clearance 9000-0061 
reflecting a slight increase to the hours will be forwarded to the 
Office of Management and Budget under 44 U.S.C. 3501, et seq. Public 
comments concerning this request were invited through a Federal 
Register notice published on January 27, 1998. No comments were 
received.

List of Subjects in 48 CFR Part 52

    Government procurement.


[[Page 70292]]


    Dated: December 14, 1998.
Ralph DeStefano,
Acting Director, Federal Acquisition Policy Division.
    Therefore, 48 CFR Part 52 is 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 (Feb 1999)

    (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 to the destination; and
    (2) Shall retain, and make available to the Government for 
review as necessary, the following evidence of shipment 
documentation for a period of 3 years after final payment under 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. 98-33521 Filed 12-16-98; 8:45 am]
BILLING CODE 6820-EP-P