[Federal Register Volume 66, Number 86 (Thursday, May 3, 2001)]
[Notices]
[Pages 22219-22220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11080]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0102]


Federal Acquisition Regulation; Proposed Collection; Prompt 
Payment

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

ACTION: Notice of request for public comments regarding an extension to 
an existing OMB clearance (9000-0102).

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SUMMARY: Under the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), the Federal Acquisition Regulation (FAR) 
Secretariat will be submitting to the Office of Management and Budget 
(OMB) a request to review and approve an extension to a currently 
approved information collection requirement concerning prompt payment. 
The clearance currently expires on June 30, 2001.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the FAR, and whether it will have practical utility; 
whether our estimate of the public burden of this collection of 
information is accurate, and based on valid assumptions and 
methodology; ways to enhance the quality, utility, and clarity of the 
information to be collected; and ways in which we can minimize the 
burden of the collection of information on those who are to respond, 
through the use of appropriate technological collection techniques or 
other forms of information technology.

DATES: Submit comments on or before July 2, 2001.

ADDRESSES: Submit comments regarding this burden estimate or any other 
aspect of this collection of information, including suggestions for 
reducing this burden to: FAR Desk Officer, OMB, Room 10102, NEOB, 
Washington, DC 20503, and a copy to the General Services 
Administration, FAR Secretariat, 1800 F Street, NW., Room 4035, 
Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Jerry Olson, Acquisition Policy 
Division, GSA (202) 501-3221.

SUPPLEMENTARY INFORMATION:

A. Purpose

    Part 32 of the FAR and the clause at FAR 52.232-5, Payments Under 
Fixed-Price Construction Contracts, require that contractors under 
fixed-price construction contracts certify, for every progress payment 
request, that payments to subcontractors/ suppliers have been made from 
previous payments received under the contract and timely payments will 
be made from the proceeds of the payment covered by the certification, 
and that this payment request does not include any amount which the 
contractor intends to withhold from a subcontractor/ supplier. Part 32 
of the FAR and the clause at 52.232-27, Prompt Payment for Construction 
Contracts, further require that contractors on construction contracts--
    (a) Notify subcontractors/suppliers of any amounts to be withheld 
and furnish a copy of the notification to the contracting officer;
    (b) Pay interest to subcontractors/suppliers if payment is not made 
by 7 days after receipt of payment from the Government, or within 7 
days after correction of previously identified deficiencies;
    (c) Pay interest to the Government if amounts are withheld from 
subcontractors/suppliers after the Government has paid the contractor 
the amounts subsequently withheld, or if the Government has 
inadvertently paid the contractor for nonconforming performance; and
    (d) Include a payment clause in each subcontract which obligates 
the contractor to pay the subcontractor for satisfactory performance 
under its subcontract not later than 7 days after such amounts are paid 
to the contractor, include an interest penalty clause which obligates 
the contractor to pay the subcontractor an interest penalty if payments 
are not made in a timely manner, and include a clause requiring each 
subcontractor to include these clauses in each of its subcontractors 
and to require each of its subcontractors to

[[Page 22220]]

include similar clauses in their subcontracts.
    These requirements are imposed by Public Law 100-496, the Prompt 
Payment Act Amendments of 1988.
    Contracting officers will be notified if the contractor withholds 
amounts from subcontractors/suppliers after the Government has already 
paid the contractor the amounts withheld. The contracting officer must 
then charge the contractor interest on the amounts withheld from 
subcontractors/suppliers. Federal agencies could not comply with the 
requirements of the law if this information were not collected.

B. Annual Reporting Burden

    Respondents: 38,194.
    Responses Per Respondent: 11.
    Total Responses: 420,134.
    Hours Per Response: 11.
    Total Burden Hours: 46,215.

C. Annual Recordkeeping Burden

    Recordkeepers: 34,722.
    Hours Per Recordkeeper: 18.
    Total Recordkeeping Burden Hours: 624,996.

Obtaining Copies of Proposals

    Requester may obtain a copy of the proposal from the General 
Services Administration, FAR Secretariat (MVP), 1800 F Street, NW., 
Room 4035, Washington, DC 20405, telephone (202) 501-4755. Please cite 
OMB Control No. 9000-0102, Prompt Payment, in all correspondence.

    Dated: April 30, 2001.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 01-11080 Filed 5-2-01; 8:45 am]
BILLING CODE 6820-34-U