[Federal Register Volume 76, Number 224 (Monday, November 21, 2011)]
[Proposed Rules]
[Pages 71928-71930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29860]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 232 and 252

RIN 0750-AH40


Defense Federal Acquisition Regulation Supplement; Updates to 
Wide Area WorkFlow (DFARS Case 2011-D027)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement to update policies on the submission of payment 
requests and receiving reports in electronic format.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 20, 2012, to be considered 
in the formation of the final rule.

ADDRESSES: Submit comments identified by DFARS case 2011-D027, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by inputting ``DFARS Case 2011-
D027'' under the heading ``Enter keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``DFARS Case 2011-D027.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``DFARS Case 2011-D027'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2011-D027 in the 
subject line of the message.
    [cir] Fax: (703) 602-0350.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Julian Thrash, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Julian Thrash, (703) 602-0310.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD proposes to update policy and procedures in the Defense Federal 
Acquisition Regulation Supplement (DFARS) for electronic submission of 
payment requests and receiving reports through Wide Area WorkFlow 
(WAWF) and TRICARE Encounter Data System (TEDS). WAWF, which 
electronically interfaces with the primary DoD payment systems, is the 
accepted DoD system for generating invoices and receiving reports. TEDS 
is an accepted system for processing payment requests for rendered 
TRICARE health care services.
    The capabilities of WAWF have expanded to enable use in a wider 
variety of environments by a wider variety of users. As such, this rule 
is intended to expand the use of WAWF for submission of payment 
requests and receiving reports and to standardize processes and 
instructions on the use of WAWF by accomplishing the following DFARS 
revisions:
     Update 232.7002(a)(1) to clarify that only payment 
requests (not receiving reports) for contracts paid for with the 
Governmentwide commercial purchase card are excepted from using WAWF;
     Remove the exception to the use of WAWF at 232.7002(a)(2) 
for contracts awarded to foreign vendors;
     Update 232.7002(a)(3) to specify a WAWF exception for 
contracts awarded by contracting officers for contingency, 
humanitarian, peacekeeping, or emergency response operations only when 
the use of WAWF is not feasible by the contractor;
     Update 232.7002(a)(4) to specify a WAWF exception for 
purchases made for an unusual or compelling need as defined in Federal 
Acquisition Regulation (FAR) 6.302-2 only when the use of WAWF is not 
feasible;
     Remove, at 232.7003(b), the contracting officer's 
authority to allow a contractor to submit a payment request and 
receiving report using an electronic form other than WAWF, unless a 
written determination is provided to the Senior Procurement Executive;
     Add at 232.7003(c), the use of TEDS for submitting and 
processing TRICARE payment requests and receiving reports for rendered 
health care services; and
     Provide a standard WAWF payment clause.

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

III. Regulatory Flexibility Act

    DoD expects that this proposed rule may 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. Therefore, an 
Initial Regulatory Flexibility Analysis has been prepared and is 
summarized as follows:
    The rule incorporates WAWF's new capability of capturing receiving 
reports for contracts paid for with a Governmentwide commercial 
purchase card and clarifies exceptions to the use of WAWF only when it 
is not feasible. The rule also consolidates and standardizes 
instructions to contractors on how to use the WAWF application. 
Furthermore, it eliminates locally defined methods that are in some 
cases causing confusion and inefficiencies, and it incorporates the use 
of TEDS for medical services requiring Health Insurance Portability and 
Accountability Act data not handled by WAWF.
    DoD made small business awards to 60,000 companies in Fiscal Year 
2010. With the exception of less than 4,000 companies that only 
received awards paid with a purchase card, this will be a 
simplification of procedures by allowing contractors to use the same 
process and systems for all DoD shipments.
    This rule does not impose any new reporting or recordkeeping 
requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. There are no significant alternatives to accomplish the 
stated objectives of this rule.

[[Page 71929]]

    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D027) in the 
correspondence.

IV. Paperwork Reduction Act

    This rule does not impose any new information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 232 and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore DoD proposes to amend 48 CFR parts 232 and 252 as 
follows:
    1. The authority citation for 48 CFR parts 232 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 232--CONTRACT FINANCING

    2. Revise section 232.7002(a) to read as follows:


232.7002  Policy.

    (a) Contractors shall submit payment requests and receiving reports 
in electronic form, except for--
    (1) Payment requests for purchases paid for with a Governmentwide 
commercial purchase card;
    (2) Classified contracts or purchases when electronic submission 
and processing of payment requests could compromise the safeguarding of 
classified information or national security;
    (3) Contracts awarded by deployed contracting officers in the 
course of military operations, including, but not limited to, 
contingency operations as defined in 10 U.S.C. 101(a)(13) or 
humanitarian or peacekeeping operations as defined in 10 U.S.C. 
2302(8), or contracts awarded by contracting officers in the conduct of 
emergency operations, such as responses to natural disasters or 
national or civil emergencies, when access to Wide Area WorkFlow by 
those contractors is not feasible;
    (4) Purchases to support unusual or compelling needs of the type 
described in FAR 6.302-2, when access to Wide Area WorkFlow by those 
contractors is not feasible;
    (5) Cases in which DoD is unable to receive payment requests or 
provide acceptance in electronic form; or
    (6) Cases in which the contracting officer administering the 
contract for payment has determined, in writing, that electronic 
submission would be unduly burdensome to the contractor. In those 
cases, a copy of the determination shall be furnished to the Service 
Procurement Executive.
* * * * *
    3. Amend section 232.7003 by revising paragraphs (b) and (c) to 
read as follows:


232.7003  Procedures.

* * * * *
    (b) For payment of commercial transportation services provided 
under a Government rate tender or a contract for transportation 
services, the use of a DoD-approved electronic third party payment 
system or other exempted vendor payment/invoicing system (e.g., 
PowerTrack, Transportation Financial Management System, and Cargo and 
Billing System) is permitted.
    (c) For submitting and processing payment requests and receiving 
reports for rendered health care services, use of TRICARE Encounter 
Data System (TEDS) as the electronic format is permitted.
    4. Revise section 232.7004 to read as follows:


232.7004  Contract clauses.

    (a) Except as provided in 232.7002(a)(2), (3), or (4), use the 
clause at 252.232-7003, Electronic Submission of Payment Requests and 
Receiving Reports, in solicitations and contracts.
    (b) Use the clause at 252.232-70XX, Wide Area WorkFlow Payment 
Instructions, when 252.232-7003 is used and neither 232.7003 (b) nor 
(c) apply. See PGI 232.7004 for instructions on completing the clause.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Amend section 252.232-7003 by--
    (a) Amending the introductory text to remove ``232.7004'' and 
insert in its place ``232.7004(a)'';
    (b) Amending the clause date by removing ``(MAR 2008)'' and adding 
in its place ``(Date)'';
    (c) Adding new paragraph (a)(4);
    (d) Removing paragraphs (c)(1) and (2);
    (e) Redesignating paragraphs (c)(3) and (4) as paragraphs (c)(1) 
and (2), respectively; and
    (f) Amending the newly redesignated paragraph (c)(1) by removing 
the word ``or'' at the end of the paragraph;
    (g) Amending the newly redesignated paragraph (c)(2) by removing 
``.'' and replacing it with ``;'' at the end of the paragraph;
    (h) Adding new paragraphs (c)(3) and (4).
    The additions read as follows:


252.232-7003  Electronic Submission of Payment Requests and Receiving 
Reports.

* * * * *
    (a) * * *
    (4) ``Receiving report'' means the data required by the clause at 
252.246-7000, Material Inspection and Receiving Report.
* * * * *
    (c) * * *
    (3) DoD makes payment for rendered health care services using the 
TRICARE Encounter Data System (TEDS) as the electronic format; or
    (4) Payment is made via the Governmentwide commercial purchase 
card, the receiving report shall still be submitted via WAWF.
* * * * *
    6. Section 252.232-70XX is added to read as follows:


252.232-70xx  Wide Area WorkFlow Payment Instructions.

    As prescribed in 232.7004(b), use the following clause:

WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (DATE)

    (a) Definitions. As used in this clause--
    Document type means the type of payment request or receiving 
report available for creation in Wide Area WorkFlow (WAWF).
    Department of Defense Activity Address Code (DoDAAC) is a six 
position code that uniquely identifies a unit, activity, or 
organization.
    Local processing office (LPO) is the office responsible for 
payment certification when the entitlement system is OnePay.
    (b) Electronic Invoicing. The WAWF system is the preferred 
method to electronically process vendor payment requests and 
receiving reports, as authorized by DFARS 252.232-7003, Electronic 
Submission of Payment Requests and Receiving Reports, unless an 
alternate invoicing method is agreed to by the contracting parties 
in accordance with DFARS clause 252.232-7003.
    (c) WAWF Access. To access WAWF, the Contractor shall--
    (1) Have a designated electronic business point of contact in 
the Central Contractor Registration at https://www.acquisition.gov; 
and
    (2) Be registered to use WAWF at https://wawf.eb.mil/ following 
the step-by-step procedures for self-registration available at this 
Web site.
    (d) WAWF Training. The Contractor should follow the training 
instructions of the WAWF

[[Page 71930]]

Web-Based Training Course and use the Practice Training Site before 
submitting payment requests through WAWF. Both can be accessed by 
selecting the ``Web Based Training'' link on the WAWF home page at 
https://wawf.eb.mil/.
    (e) WAWF Methods of Document Submission. Document submissions 
may be via web entry, Electronic Data Interchange, or File Transfer 
Protocol.
    (f) WAWF Payment Instructions. The Contractor must use the 
following information when submitting payment requests and receiving 
reports in WAWF for this contract/order:
    (1) Document Type. The Contractor agrees to use the document 
type(s) identified below, unless the Contractor notifies the 
contracting officer that its business process does not allow for 
submission of the specified document type(s). The Contractor and the 
contracting officer must agree to an alternative document type 
before award.
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(Contracting Officer: Insert Applicable Document Type(s)

    Note: If a Combo Document Type is identified but not supportable 
by the Contractor's business systems, an Invoice (stand-alone) and 
Receiving Report (stand-alone) Document Type may be used instead.)

    (2) Inspection/Acceptance Location. The Contractor shall select 
the appropriate inspection/acceptance location(s) in WAWF, if 
specified by the contracting officer below.
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(Contracting Officer: Insert Inspection and Acceptance locations or 
``Not Applicable''.)

    (3) Document Routing. The Contractor shall use the information 
in the Routing Data Table below only to fill in applicable fields in 
WAWF when creating payment requests and receiving reports in the 
System.

                          Routing Data Table *
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         Field name in WAWF               Data to be entered in WAWF
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Pay Office DoDAAC
Issue By DoDAAC
Admin DoDAAC
Inspect By DoDAAC
Ship To Code
Service Approver (DoDAAC)
Ship From Code
Service Acceptor (DoDAAC)
Accept at Other DoDAAC
LPO DoDAAC
DCAA Auditor DoDAAC
Other DoDAAC(s)
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(*Contracting Officer: Insert applicable DoDAAC information or ``See
  Schedule'' if multiple Ship to/Acceptance locations apply, or ``Not
  Applicable''.)

    (4) Payment Request and Supporting Documentation. The Contractor 
shall ensure a payment request includes appropriate contract line 
item and subline item descriptions of the work performed or supplies 
delivered, unit price/cost per unit, fee (if applicable), and all 
relevant back-up documentation (e.g. timesheets) in support of each 
payment request.
    (5) WAWF Email Notifications. The Contractor shall enter the 
email address identified below in the ``Send Additional Email 
Notifications'' field of WAWF once a document is submitted in the 
system.
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(Contracting Officer: Insert applicable Email addresses or ``Not 
Applicable''.)

    (g) Payment Request Follow-up. The Contractor may obtain invoice 
status by accessing https://myinvoice.csd.disa.mil/, after 
submission of an invoice in WAWF. The information may not be readily 
available until at least 3 days prior to payment date.
    (h) WAWF Point of Contact. The Contractor may obtain 
clarification regarding invoicing in WAWF from the contracting 
activity's WAWF point of contact identified below.
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(Contracting Officer: Insert applicable information or ``Not 
Applicable''.)
(End of clause)

[FR Doc. 2011-29860 Filed 11-18-11; 8:45 am]
BILLING CODE 5001-06-P