[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Rules and Regulations]
[Pages 37044-37045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17373]
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DEPARTMENT OF JUSTICE
48 CFR Part 2832
[Justice Acquisition Circular 99-1]
RIN 1105-AA68
Amendment to the Justice Acquisition Regulations (JAR) Regarding:
Electronic Funds Transfer
AGENCY: Justice Management Division, Justice.
ACTION: Final rule.
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SUMMARY: The Department of Justice is amending the Justice Acquisition
Regulations (JAR) to provide flexibility to contractors in the timing
of receipt of Electronic Funds Transfer (EFT) information from them.
The Debt Collection Improvement Act of 1996, Public Law (P.L.) 104-134,
mandates payment by EFT in most situations. In order to make the
payment by EFT, the Department needs certain information from
contractors. This rule gives the Department's contracting officers
discretion in determining when contractors must submit the required
information. Without the changes made by this rule, contractors would
have to submit their EFT information no later than 15 days prior to
their first request for payment.
DATES: Effective date: This rule is effective July 9, 1999.
FOR FURTHER INFORMATION CONTACT: Janis A. Spostao, Procurement
Executive, Justice Management Division (202) 514-3103.
SUPPLEMENTARY INFORMATION:
Why Is the Department Changing the Justice Acquisition Regulations?
Public Law 104-134 amended 31 U.S.C. section 3332, to require that
beginning January 2, 1999, all Federal payments (other than payments
under the Internal Revenue Code of 1986) shall be made by EFT. The
Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council are responsibilities for issuing Federal
Acquisition Circulars (FACs) and the Federal Acquisition Regulations
(FAR) which are binding on other Federal Agencies. On March 4, 1999,
these councils published Federal Acquisition Circular (FAC) 97-11, in
the Federal Register (64 FR 10538-10544) as a final rule with an
effective date of May 3, 1999. A portion of this final rule--Item IV--
Electronic Funds Transfer--amended the FAR to address the use of EFT
for Federal contract payments and to facilitate the implementation of
P.L. 104-134.
Who Is Affected by the Changes Made by Item IV--Electronic Funds
Transfer?
Before the latest FAR revision, contractors who sell to Federal
agencies were required to furnish EFT information no later than 15 days
prior to the submission of their first request for payment. Some
contractors furnish their EFT information by registering in the Central
Contractor Registration database. Agencies use that database to obtain
EFT information. Other contractors are not registered in the Central
Contractor Registration database, or agencies elect not to use the
database. Under those circumstances, agencies collect EFT information
directly from contractors.
What Changes Does This Rule Make?
When collecting EFT information directly from contractors, Item IV
of FAC 97-11 allows the heads of Federal agencies to issue procedures
that allow contracting officers discretion in determining when
contractors' EFT information must be submitted in order to comply with
P.L. 104-134 and to make timely payments. In the absence of this
regulation, contractors of the Department would have to submit EFT
information no later than 15 days prior to the submission of the first
request for payment. This rule gives the Department's contracting
officers discretion in determining when contractors must submit the
required information. This flexibility will allow components of the
Department to receive the EFT information with the first invoice,
rather than 15 days before the first invoice. For those components that
adopt such a procedure, contractors will only have to make one
submission (the EFT information along with the invoice) rather than two
submissions (the EFT information and--at least 15 days later--the
invoice.) The flexibility proposed by this rule should be a benefit to
contractors.
Regulatory Certifications
Administrative Procedure Act, 5 U.S.C. 553
This rule enhances the ability of Department contracting officers
to allow contractors flexibility as to when to submit information
required by current statute law and regulations. Further, this rule
imposes no new restrictions. Accordingly, the Department of Justice
finds good cause for exempting this rule from the provision of the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, the opportunity for public comment, and delay in
effective date.
Regulatory Flexibility Act
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council published FAC 97-11 on March 4, 1999 at 64 FR
10538. In conjunction with the publication of that final rule, these
councils performed a Final Regulatory Flexibility Analysis and
submitted a copy to the Chief Counsel for Advocacy of the Small
Business Administration.
The Assistant Attorney General for Administration in accordance
with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed
this regulation and by approving it certifies that this regulation will
not have a significant economic impact on a substantial number of small
entities because this regulation merely sets forth internal procedures
of the Department relating to the timing of receipt of EFT information
from contractors.
Executive Order 12866
This regulation has been drafted and reviewed in accordance with
Executive Order 12866, ``Regulatory Planning and Review'', Sec. 1(b),
Principles of Regulation. The Department of Justice has determined that
this rule is not a ``significant regulatory action'' under Executive
Order 12866, Sec. 3(f), and accordingly this rule has not been reviewed
by the Office of Management and Budget.
Executive Order 12612
This regulation will not have substantial direct effects on the
States, on the relationship between the national government and the
States, or on distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with Executive
Order 12612, it is determined that this rule does not have sufficient
federalism implications to warrant the preparation of a Federalism
Assessment.
[[Page 37045]]
Executive Order 12988--Civil Justice Reform
This regulation meets the applicable standards set forth in
sections 3(a) and 3(b)(2) of Executive Order 12988.
Unfunded Mandates Reform Act of 1995
This rule will not result in the expenditure by State, local and
tribal governments, in the aggregate, or by the private sector, of
$100,000,000 or more in any one year, and it will not significantly or
uniquely affect small governments. Therefore, no actions were deemed
necessary under the provisions of the Unfunded Mandates Reform Act of
1995.
Plain Language Instructions
We try to write clearly. If you can suggest how to improve the
clarity of these regulations, call or write Janis A. Sposato,
Procurement Executive, Justice Management Division (202) 514-3103.
Paperwork Reduction Act
This rule imposes no new information collection requirements that
require approval by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1980 (Pub. L. 96-511). All information
collection requirements have been submitted to OMB. In those cases
where an OMB control number has been assigned, the control number is
included in the regulation.
List of Subjects in 48 CFR Part 2832
Government procurement.
Stephen R. Colgate,
Assistant Attorney General for Administration.
Accordingly, 48 CFR part 2832 is amended as follows:
1. The authority citation for 48 CFR part 2832 continues to read as
follows:
Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and
28 CFR 0.76(j).
PART 2832--CONTRACT FINANCING
2. A new Subpart 2832.11 is added to read as follows:
Subpart 2832.11--Electronic Funds Transfer
2832.1110 Solicitation provision and contract clauses.
Subpart 2832.11--Electronic Funds Transfer
2832.1110 Solicitation provision and contract clauses.
When the clause at FAR 52.232-34, Payment by Electronic Funds
Transfer-Other than Central Contractor Registration, is required the
contracting officer may insert in paragraph (b)(1) of the clause a
particular time after award, such as a fixed number of days, or an
event such as the submission of the first request for payment, to
establish the point at which contractors' EFT information must be
provided.
[FR Doc. 99-17373 Filed 7-8-99; 8:45 am]
BILLING CODE 4410-AR-M