[Federal Register Volume 76, Number 48 (Friday, March 11, 2011)]
[Proposed Rules]
[Pages 13329-13330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5502]


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GENERAL SERVICES ADMINISTRATION

48 CFR Part 532

[GSAR Case 2010-G509; Docket 2011-0009; Sequence 1]
RIN 3090-AJ13


Reinstatement of Coverage Pertaining to Final Payment Under 
Construction and Building Services

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Proposed rule.

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SUMMARY: GSA is proposing to amend the General Services Administration 
Acquisition Regulation (GSAR) to amend the GSAR to restore guidance on 
making final payments under construction and building service contracts 
to ensure contractors are paid in accordance with their contract 
requirements and not overpaid or receive improper payments for work 
performed. This guidance, which prescribed the use of GSA Form 1142, 
Release of Claims, for releases of claims under construction and 
building service contracts, was inadvertently deleted as part of the 
Rewrite of GSAR regulations on Contract Financing. GSA Contracting 
Officers have used this form to achieve uniformity and consistency in 
the release of claims process.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before May 10, 2011 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2010-G509 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``GSAR Case 2010-G509'' under the heading ``Enter Key Word or ID''. 
Follow the instructions provided to ``Submit a Comment''. Please 
include your name, company name (if any), and ``GSAR Case 2010-G509'' 
on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat, 1275 First Street, NE., 7th Floor, ATTN: Hada Flowers, 
Washington, DC 20417.
    Instructions: Please submit comments only and cite GSAR Case 2010-
G509 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Edward N. Chambers at (202) 501-3221, or by e-mail at 
[email protected]. For information pertaining to the status or 
publication schedules, contact the Regulatory Secretariat, 7th Floor, 
GS Building, Washington, DC 20417, (202) 501-4755. Please cite GSAR 
Case 2010-G509.

SUPPLEMENTARY INFORMATION: 

A. Background

    A release of claims is a requirement under GSAR clause 552.232-72, 
Final Payment, precedent to making final payment under construction and 
building service contracts. Prior to deleting the form, GSA Contracting 
Officers relied upon GSA Form 1142 to obtain the release of claims 
under these contracts. However, GSAR 532.905-71 which prescribed the 
use of GSA Form 1142 for releases of claims under construction and 
building service contracts was inadvertently deleted as part of the 
Rewrite of GSAR Part 532, Contract Financing published in the Federal 
Register at 74 FR 54915, on October 29, 2009, GSAR Case 2006-G515. GSAR 
532.905-71 also provided guidance on deductions to final payments under 
construction and building service contracts.
    GSA Form 1142, Release of Claims, uses standard language for 
contractors to attest that is has no claims, or no claims except for 
those they may set forth where indicated on the form. The form requires 
a signature from the contractor and a witness. Additionally, there is a 
location for the firm's seal.
    GSA believes that GSA Form 1142 provides great value and 
accountability in providing uniformity and consistency for the release 
of claims process. Without the GSA Form 1142, GSA Contracting Officers 
will be required to verify that contractor release of claims letter 
includes appropriate wording before final payment is made, resulting in 
their devotion of considerable additional resources to this process. 
Further, the coverage on deductions under GSAR 532.905-71 was useful in 
preventing overpayments to contractors consistent with the 
Administration Improper Payments Elimination and Recovery Act and OMB 
efforts to eliminate improper payments.
    Consequently, GSA proposes to amend the GSAR to restore the 
coverage at GSAR 532.905-71. Since the referenced GSAR Rewrite of Part 
532 (74 FR 54915) also deleted GSAR 532.905-70, this coverage will be 
restored at GSAR 532.905-70 vice GSAR 532.905-71.

[[Page 13330]]

B. Executive Order 12866 and 13563

    This is not a significant regulatory action and, therefore, was not 
subject to 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. In accordance with Executive Order 
13563, Improving Regulation and Regulatory Review, dated January 18, 
2011, GSA has determined that this rule is not excessively burdensome 
to the public, and that GSA Form 1142 which is prescribed by the rule 
is useful to contractors in presenting their release of claims to the 
Government.

C. Regulatory Flexibility Act

    The General Services Administration does not expect this proposed 
rule to 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 requires the collection of the 
information that is administrative in nature. Submission of this 
information should not be burdensome to the contractor but should 
provide a consistent format that the contractor can use to report their 
claims information to the GSA. An Initial Regulatory Flexibility 
Analysis has, therefore, not been performed. We invite comments from 
small businesses and other interested parties. GSA will consider 
comments from small entities concerning the affected GSAR Part 532 in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq. (GSAR case 
2010-G509), in correspondence.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does apply; however, these changes to 
the GSAR do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Number 
3090-0080.

List of Subjects in 48 CFR Part 532

    Government procurement.

    Dated: March 7, 2011.
Millisa Gary,
Acting Director, Office of Governmentwide Acquisition Policy.

    Therefore, GSA proposes to amend 48 CFR part 532 as set forth 
below:

PART 532--CONTRACT FINANCING

    1. The authority citation for 48 CFR part 532 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c).

    2. Add section 532.905-70 to read as follows:


532.905-70  Final payment--construction and building service contracts.

    The following procedures apply to construction and building service 
contracts:
    (a) The Government shall pay the final amount due the Contractor 
under this contract after the documentation in FAR 52.232-5 is 
provided.
    (b) Contracting Officers may not process the final payment on 
construction or building service contracts until the contractor submits 
a properly executed GSA Form 1142, Release of Claims, except as 
provided in paragraph (c) of this section.
    (c) In cases where, after 60 days from the initial attempt, the 
Contracting Officer is unable to obtain a release of claims from the 
contractor, the final payment may be processed with the approval of 
assigned legal counsel.
    (d) The amount of final payment must include, as appropriate, 
deductions to cover any of the following:
    (1) Liquidated damages for late completion.
    (2) Liquidated damages for labor violations.
    (3) Amount withheld for improper payment of labor wages.
    (4) The amount of unilateral change orders covering defects and 
omissions.

[FR Doc. 2011-5502 Filed 3-10-11; 8:45 am]
BILLING CODE 6820-61-P