[Federal Register Volume 71, Number 107 (Monday, June 5, 2006)]
[Rules and Regulations]
[Pages 32282-32284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-8665]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1532 and 1552

[FRL-8179-6]


EPAAR Prescription and Clause--Simplified Acquisition Procedures 
Financing

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is revising the EPA Acquisition Regulation (EPAAR) 
Subparts 1532 and 1552 to implement a procedure for simplified 
acquisition procedures financing. This EPAAR revision adds a 
prescription and clause for contracting officers to use when approving 
advance or interim payments on simplified acquisitions. The 
prescription and clause apply to commercial item orders at or below the 
simplified acquisition threshold. This action revises the EPAAR, but 
does not impose any new requirements on Agency contractors. The 
procedure allows contractors to invoice for advance and interim 
payments in accordance with standard commercial practices when 
authorized by the contracting officer and identified in the clause 
payment schedule.

DATES: This final rule is effective on June 5, 2006.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-OARM-2006-0126. All documents in the docket are listed on the 
http://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically through http://www.regulations.gov or in hard copy at the OEI Docket, EPA/DC, EPA 
West, Room B102, 1301 Constitution Ave., NW., Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the OEI 
Docket is (202) 566-1752.

FOR FURTHER INFORMATION CONTACT: Tiffany Schermerhorn, Policy, Training 
and Oversight Division, Office of Acquisition Management, Mail Code 
3802R, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., 
Washington, DC 20460; telephone number: (202) 564-9902; fax number: 
(202) 565-2475; e-mail address: [email protected].

SUPPLEMENTARY INFORMATION: 

I. General Information

    The EPAAR additions are necessary so that contracting officers may 
provide simplified acquisition procedures financing that is appropriate 
or customary in the commercial marketplace when purchasing commercial 
items at or below the simplified acquisition threshold. This rule does 
not impose any new requirements regarding submission of invoices or 
vouchers since Agency contractors currently submit invoices or vouchers 
for payment of orders. The EPAAR changes are consistent with the 
Federal Acquisition Regulation. No public comments were received in 
response to the proposed rule published on March 13, 2006. However, a 
minor revision to the proposed language has been made in response to an 
internal agency comment.

II. Statutory and Executive Order Reviews

A. Executive Order 12866

    It has been determined that this rule is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
This rule does not impose any new information collection or other 
requirements on Agency contractors.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's rule on small 
entities, small entity is defined as: (1) A small business as defined 
by the Small Business Administration's (SBA) regulations at 13 CFR 
121.201; (2) a small governmental jurisdiction that is a government of 
a city, county, town, school district or special district with a 
population of less than 50,000; and (3) a small organization that is 
any not-for-profit enterprise which is independently owned and operated 
and is not dominant in its field.
    After considering the economic impacts of today's proposed rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. This final 
rule will not impose any new requirements on small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted. Before EPA establishes any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, it must have developed under 
section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of EPA regulatory proposals with significant 
Federal intergovernmental mandates, and informing, educating, and 
advising

[[Page 32283]]

small governments on compliance with the regulatory requirements.
    Today's rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, or tribal 
governments or the private sector. The rule imposes no enforceable duty 
on any State, local or tribal governments or the private sector. Thus, 
today's rule is not subject to the requirements of sections 202 and 205 
of the UMRA.

E. Executive Order 13132 (Federalism)

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This final rule does not have federalism implications. It will not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. Thus, Executive Order 13132 does 
not apply to this rule.

F. Executive Order 13175 (Consultation and Coordination With Indian 
Tribal Governments)

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This final rule does not have 
tribal implications, as specified in Executive Order 13175. It will not 
have substantial direct effects on tribal governments, or on the 
relationship between the Federal government and Indian tribes, as 
specified in Executive Order 13175. The final rule amends acquisition 
regulations that are administrative and procedural in nature. Thus, 
Executive Order 13175 does not apply to this rule.

G. Executive Order 13045

    Executive Order 13045: ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    This rule is not subject to Executive Order 13045 because it is not 
an economically significant rule as defined by Executive Order 12866, 
and because it does not involve decisions on environmental health or 
safety risk.

H. Executive Order 13211 (Energy Effects)

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards in its regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. The NTTAA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This rulemaking does not involve technical standards. Therefore, 
EPA is not considering the use of any voluntary consensus standards. 
EPA welcomes comments on this aspect of the rulemaking and, 
specifically, invites the public to identify potentially-applicable 
voluntary consensus standards and to explain why such standards should 
be used in this regulation.

J. Submission to Congress and the General Accounting Office

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective on June 5, 2006.

List of Subjects in 48 CFR Parts 1532 and 1552

    Government procurement.

    Dated: May 24, 2006.
Judy S. Davis,
Director, Office of Acquisition Management.

0
For the reasons set forth in the Preamble, the Environmental Protection 
Agency amends Chapter 15 of Title 48 Code of Federal Regulations, parts 
1532 and 1552 as set forth below:
0
1. The authority citation for 48 CFR parts 1532 and 1552 continues to 
read as follows:

    Authority: Section 205(c), 63 Stat. 390 as amended, 40 U.S.C. 
486(c).

PART 1532--CONTRACT FINANCING

0
2. Add 1532.003 to read as follows:


1532.003  Simplified acquisition procedures financing.

    (a) Scope. This subpart provides for authorization of advance and 
interim payments on commercial item orders not exceeding the simplified 
acquisition threshold. Advance payments are payments that are made 
prior to performance. Interim payments are payments that are made 
during the order period according to a payment schedule.
    (b) Procedures for micropurchases. Contracting officers may 
authorize advance and interim payments on orders for commercial items 
only at or below the micropurchase threshold.
    (c) Procedures for purchases exceeding micropurchase threshold. 
Contracting officers must secure approval at one level above the 
contracting officer, on a case-by-case basis, for advance and interim 
payments on orders for commercial items exceeding the micropurchase 
threshold and not exceeding the simplified acquisition threshold. The 
contracting officer shall submit a recommendation

[[Page 32284]]

for approval of financing terms, along with the supporting rationale 
for the action, to one level above the contracting officer. Remote 
simplified acquisition contracting officers (SACO) without one level 
above contracting officers at their locations shall forward 
recommendations through their OAM Advisors to secure one level above 
approval.
    (d) Supporting rationale. Regardless of dollar value, the 
contracting officer shall document the file with supporting rationale 
demonstrating that the purchase meets the conditions of FAR 32.202-
1(b)(1), (3) and (4).
    (e) Administration. Regardless of dollar value, the contracting 
officer is responsible for ensuring that supplies or services have been 
delivered. The contracting officer shall document the file with 
evidence of receipt of supplies or services throughout the order period 
as appropriate to the acquisition.
    (f) Clause. The contracting officer shall insert the clause at 
1552.232-74, Payments--Simplified Acquisition Procedures Financing, in 
solicitations and orders that will provide simplified acquisition 
procedures financing.

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Add 1552.232-74 to read as follows:


1552.232-74  Payments--Simplified Acquisition Procedures Financing.

    As prescribed in 1532.003, insert the following clause in 
solicitations and orders that will provide simplified acquisition 
procedures financing.

Payments--Simplified Acquisition Procedures Financing (JUN 2006)

    Simplified acquisition procedures financing in the form of --------
---- [contracting officer insert advance (prior to performance) and/or 
interim (according to payment schedule] payment(s)) will be provided 
under this commercial item order in accordance with the payment 
schedule below. If both advance and interim payments are to be made, 
the payment schedule shown below will specify the type of payment 
provided for each line item.
    The Government shall pay the contractor as follows upon the 
submission of invoices or vouchers approved by the project officer: --
---------------------- [insert payment schedule].

[FR Doc. E6-8665 Filed 6-2-06; 8:45 am]
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