[Federal Register Volume 71, Number 75 (Wednesday, April 19, 2006)]
[Rules and Regulations]
[Pages 20308-20309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3686]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 2005-09; FAR Case 2004-031; Item IX; Docket FAR-2006-0020]
RIN 9000-AK24


Federal Acquisition Regulation; FAR Case 2004-031, Fast Payment 
Procedures

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 (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) by revising fast 
payment procedures. The revision permits, but does not require, fast 
payment when invoices and/or outer shipping containers are not marked 
``Fast Pay'' provided the contract includes the ``Fast Payment 
Procedure'' clause. As highlighted in the clause, if the clause is in 
the contract, the invoices will no longer be rejected, as is the 
current practice. Instead, they will be paid using either fast payment 
or normal payment procedures. In addition, the revision deletes the 
requirement for marking invoices ``No Receiving Report Prepared.''

DATES: Effective Date: May 19, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Jeremy Olson, Procurement Analyst, at (202) 501-3221. Please cite 
FAC 2005-09, FAR case 2004-031. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD, GSA, and NASA published a proposed rule, FAR case 2004-031, at 
70 FR 40279 on July 13, 2005, to obtain comments on a proposal to amend 
the policies and contract clause regarding Fast Pay procedures. No 
comments were submitted and the rule was converted to a final rule 
without change from the proposed rule. FAR 52.213-1, Fast Payment 
Procedure, is revised to permit acceptance and payment under invoices 
that are not prominently marked ``FAST PAY.''
    This change provides the payment office flexibility to make fast 
payments when invoices and/or outer shipping containers are not marked 
``FAST PAY.'' The change permits, but does not require, fast payment 
when invoices and/or outer shipping containers are not marked ``FAST 
PAY'' provided the contract includes the ``Fast Payment Procedure'' 
clause. However, if the payment office decides to not process invoices 
as ``FAST PAY'' because the proper markings are not present, the 
payment date will be the payment date that would have applied had the 
``Fast Payment Procedure'' clause not been in the contract. In this 
manner, an unmarked invoice will not be rejected. This change does not 
eliminate the requirement for the contractor to annotate an invoice 
``FAST PAY;'' the contractor remains at risk that fast payment 
procedures will not be applied unless the invoice is annotated 
accordingly.
    If a receiving report is not prepared, it is imperative that the 
invoice includes sufficient information to facilitate follow-up 
verification that the item was received. The FAR revision does not 
eliminate that requirement for such information on the invoice. 
However, the revision does not require the statement ``No Receiving 
Report Prepared'' on the invoice.
    This is not a significant regulatory action and, therefore, was not 
subject to

[[Page 20309]]

review under Section 6(b) of Executive Order 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule 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 it will have a 
beneficial, but small, impact. Under the prior policy and clause, small 
businesses which failed to follow the fast payment clause instructions 
to mark the invoice ``FAST PAY'' had their invoices rejected, which 
means they would not be paid until they sent a corrected invoice. The 
clause revisions mean the invoices would not have to be automatically 
rejected. No comments were received from small entities or other 
members of the public.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 52

    Government procurement.

    Dated: April 12, 2006.
Gerald Zaffos,
Director,Contract Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

0
2. Amend section 52.213-1 by revising the date of the clause and 
paragraphs (c)(1)(ii), (c)(3), and (e) to read as follows:


52.213-1  Fast Payment Procedure.

* * * * *

FAST PAYMENT PROCEDURE (APR 2006)

* * * * *
    (c) * * *
    (1) * * *
    (ii) Display prominently on the invoice ``FAST PAY.'' Invoices 
not prominently marked ``FAST PAY'' via manual or electronic means 
may be accepted by the payment office for fast payment. If the 
payment office declines to make fast payment, the Contractor shall 
be paid in accordance with procedures applicable to invoices to 
which the Fast Payment clause does not apply.
* * * * *
    (3) If this contract, order, or blanket purchase agreement 
requires the preparation of a receiving report, the Contractor shall 
either--
    (i) Submit the receiving report on the prescribed form with the 
invoice; or
    (ii) Include the following information on the invoice:
    (A) Shipment number.
    (B) Mode of shipment.
    (C) At line item level--
    (1) National stock number and/or manufacturer's part number;
    (2) Unit of measure;
    (3) Ship-To Point;
    (4) Mark-For Point, if in the contract; and
    (5) FEDSTRIP/MILSTRIP document number, if in the contract.
* * * * *
    (e) Fast pay container identification. The Contractor shall mark 
all outer shipping containers ``FAST PAY.'' When outer shipping 
containers are not marked ``FAST PAY,'' the payment office may make 
fast payment. If the payment office declines to make fast payment, 
the Contractor shall be paid in accordance with procedures 
applicable to invoices to which the Fast Payment clause does not 
apply.
    (End of clause)
[FR Doc. 06-3686 Filed 4-18-06; 8:45 am]
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