[Federal Register Volume 83, Number 59 (Tuesday, March 27, 2018)]
[Rules and Regulations]
[Pages 13113-13115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05883]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1816, 1832, and 1852
RIN 2700-AE39
NASA Federal Acquisition Regulation Supplement: Revised Voucher
and Invoice Submission & Payment Process (NFS Case 2017-N014)
AGENCY: National Aeronautics and Space Administration.
ACTION: Final rule.
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SUMMARY: NASA is issuing a final rule amending the NASA Federal
Acquisition Regulation Supplement (NFS) to implement revisions to the
voucher and invoice submittal and payment process.
DATES: Effective: April 26, 2018.
FOR FURTHER INFORMATION CONTACT: Mr. Geoffrey Sage, NASA HQ, Office of
Procurement, Contract and Grant Policy Division, LP-011, 300 E. Street
SW, Washington, DC 20456-0001. Telephone 202-358-2420; facsimile 202-
358-3082.
SUPPLEMENTARY INFORMATION:
I. Background: NASA published a proposed rule in the Federal
Register at 82 FR 43511 on September 18, 2017, to revise the NFS to
implement revisions to the voucher submittal and payment process. These
revisions are necessary in order for NASA to comply with the Office of
Management and Budget (OMB) issued Memorandum M-15-19, which directed
federal agencies to transition to electronic invoicing for appropriate
federal procurements by the end of fiscal year 2018. In Fiscal Year
2016, NASA revised their voucher submission and payment process to
electronically process cost type vouchers under cost-reimbursement type
contracts. As part of NASA's goal to have all contract payments
processed electronically by the end of fiscal year 2018, this rule
revises NASA's submission and payment process to
[[Page 13114]]
have invoices for fixed price contracts and fee vouchers for cost-type
contracts submitted electronically.
II. Discussion
There were no public comments submitted in response to the proposed
rule. The proposed rule has been converted to a final rule, without
change.
III. Expected Cost Savings Based on Implementation of This Rule
NASA processes approximately 55,000 invoices and vouchers per year.
Of this total population, per FPDS data compiled between FY2014 through
FY2016, approximately 59% were submitted by large business and 41% were
submitted by small businesses. Roughly 13% of the total 55,000 invoices
and vouchers submitted were processed electronically through an
electronic eInvoicing Secure File Transfer (SFT) and the remaining 87%
were processed manually by the NASA Shared Services Center. With the
publication of this rule, NASA will be processing the payment of all
invoices and vouchers electronically through an electronic eInvoicing
SFT.
Currently, when a payment is not processed through an electronic
eInvoicing SFT, vendors must submit invoices and vouchers via hardcopy,
email, or fax. The NASA Shared Service Center transaction cost for
manually processing each invoice or voucher not submitted
electronically through an electronic eInvoicing SFT is $2.11 per
submission. By adopting a 100% electronic eInvoicing SFT process, NASA
can eliminate the manual processing charge of approximately $100,964
per year. In addition, NASA anticipates that the transition to a 100%
electronic eInvoicing SFT process will result in the reduction of late
payment interest charges. In FY2016, NASA paid approximately $78,000 in
late payment interest charges. NASA estimates that it will reduce the
amount of late payment interest charges by 50% upon the elimination of
the manual processing of submitted invoices and vouchers due to the
efficiencies gained by utilizing the electronic eInvoicing SFT process.
By combining the savings achieved from moving to a 100% electronic
eInvoicing SFT processing of invoices and vouchers and the reduction in
the amount of late payment charges the estimated annualized cost
savings for the Government is $139,964.
The transition to a 100% electronic eInvoicing SFT method of
processing invoices and vouchers will result in contract administration
savings for both small and large businesses. It is estimated that .05
less hours will be required to prepare and submit an invoice or voucher
electronically as opposed to processing through a non-eInvoicing
method. Burdened labor rate equivalent to the journeyman level was used
to estimate cost savings. Therefore, NASA estimates that the submission
of invoices and vouchers through the electronic eInvoicing SFT will
result in an estimated annualized cost savings for the public of
approximately $144,485.
The total annualized cost savings is estimated at $284,449.
IV. Executive Order 13771
This final rule is considered an E.O. 13771 deregulatory action.
Details can be found in the ``Expected Cost Savings Based on
Implementation of this Rule'' section of the rule.
V. 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 not a significant regulatory action and, therefore, was not
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.
VI. Regulatory Flexibility Act
NASA does not expect this 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
guidance will not create additional burden to the contractor but rather
the rule is intended to update the current voucher and invoice
submission process at NASA resulting in fewer voucher/invoice
rejections, rework, and payment delays. A final regulatory flexibility
analysis has been prepared consistent with the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., and is summarized as follows:
The purpose of this rule is to implement revisions to the voucher
and invoice submittal and payment process. These revisions are
necessary in order for NASA to comply with the Office of Management and
Budget (OMB) issued Memorandum M-15-19, which directed federal agencies
to transition to electronic invoicing for appropriate federal
procurements by the end of fiscal year 2018.
No comments were received in response to the initial regulatory
flexibility analysis.
This rule would apply to contractor requests for payment under all
contract types. An analysis of data in the Federal Procurement Data
System (FPDS) revealed that cost reimbursement and fixed priced
contracts are primarily awarded to small businesses. FPDS data compiled
over the past three fiscal years (FY2014 through FY2016) showed an
average of 76,675 NASA contract actions, of which 45,011 (approximately
59%) were awarded to small businesses. However, there is no significant
economic or administrative cost impact to small or large businesses
because the rule will have a positive benefit in the way of fewer
voucher rejections, rework, and payment delays since all of the fee
vouchers and invoices that were previously processed manually will be
processed electronically.
In FY16, NASA processed approximately 55,000 vendor payment
requests (invoice/voucher), which are currently received by various
means (70% by email, 15% by mail, 2% by fax, 13% by an electronic
eInvoicing SFT). NASA's current payment request process for fee
vouchers and invoices requires manual intervention at almost every step
in the process. Manual intervention decreases speed and accuracy and
adds to the cost per invoice/voucher. This rule will further automate
the processing of contract payments thus reducing processing delays,
input errors, rework, interest penalties, which all add to the cost to
process each invoice and voucher.
There are no new reporting requirements, recordkeeping, or other
compliance requirements.
There are no significant alternatives that could further minimize
the already minimal impact on businesses, small or large.
VII. Paperwork Reduction Act
The rule does not contain any 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 1816, 1832, and 1852
Government procurement.
Geoffrey S. Sage,
NASA FAR Supplement Manager.
Accordingly, 48 CFR parts 1816, 1832, and 1852 are amended as
follows:
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1. The authority citation for parts 1816, 1832 and 1852 continues to
read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
PART 1816--TYPES OF CONTRACTS
0
2. Revise 1816.506-70 to read as follows:
1816.506-70 NASA contract clause.
Insert the clause at 1852.216-80, Task Ordering Procedure, in
solicitations and contracts when an indefinite-delivery, task order
contract is contemplated. The clause is applicable to both fixed-price
and cost-reimbursement type contracts. The contracting officer shall
use the clause with its--
(a) Alternate I, if the cost type, fixed price with prospective
price redetermination, or fixed-price incentive contract does not
include a NASA Form 533M reporting requirements; or
(b) Alternate II, if a fixed price contract is contemplated.
PART 1832--CONTRACT FINANCING
0
3. Revise 1832.908-70 to read as follows:
1832.908-70 Submission of vouchers/invoices.
Insert clause 1852.232-80, Submission of Vouchers/Invoices for
Payment, in all solicitations and contracts.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1852.216-80 [Amended]
0
4. Amend 1852.216-80 by revising ALTERNATE I and adding ALTERNATE II to
read as follows:
1852.216-80 Task ordering procedure.
* * * * *
Alternate I (APR 2018)
As prescribed in 1816.506-70(a), insert the following paragraph
(i):
(i) Contractor shall submit progress reports, as required. When
required, the reports shall contain, at a minimum, the following
information:
(1) Contract number, task order number, and date of the order.
(2) Total estimated dollar amount of task order(s).
(3) Cost and hours incurred to date for each issued task order.
(4) Costs and hours estimated to complete each issued task order.
(5) Significant issues/problems associated with a task order.
(6) Cost summary of the status of all task orders issued under the
contract.
(7) Invoice number.
Alternate II (APR 2018)
As prescribed in 1816.506-70(b), insert the following paragraph
(i):
(i) Contractor shall submit progress reports, as required. When
required, the reports shall contain, at a minimum, the following
information:
(1) Contract number, task order number, and date of the order.
(2) Price and billed amounts to date for each task order.
(3) Significant issues/problems associated with the task order.
(4) Status of all task orders issued under the contract.
(5) Invoice number.
* * * * *
0
5. Amend section 1852.232-80 by--
0
a. Revising clause title and date;
0
b. In paragraph (b), removing the words ``submit all vouchers
electronically using'' and adding the words ``submit all vouchers and
invoices using'' in its place;
0
c. Revising paragraphs (c),(d), and (e).
The revisions read as follows:
1852.232-80 Submission of vouchers/invoices for payment.
As prescribed in 1832.908-70, insert the following clause:
Submission of Vouchers/Invoices for Payment (APR 2018)
* * * * *
(c) Payment requests.
(1) The payment periods are stipulated in the payment clause(s)
contained in this contract.
(2) Vouchers submitted under cost type contracts and invoices
submitted under fixed-price contracts shall include the items
delineated in FAR 32.905(b) supported by relevant back-up
documentation. Back-up documentation shall include at a minimum, the
following information:
(i) Vouchers.
(A) Breakdown of billed labor costs and associated contractor
generated supporting documentation for billed direct labor costs to
include rates used and number of hours incurred.
(B) Breakdown of billed other direct costs (ODCs) and associated
contractor generated supporting documentation for billed ODCs.
(C) Indirect rate(s) used to calculate the amount of billed
indirect expenses.
(D) Progress reports, as required.
(ii) Invoices.
(A) Description of goods and services delivered as part of the
contract's terms and conditions, including the dates of delivery/
performance.
(B) Progress reports, as required.
(C) Date goods and services were performed.
(iii) Fee vouchers.
(A) Listing of all provisionally-billed fee by period or date
earned since contract award.
(B) A reconciliation of all billed and earned fee.
(C) A clear explanation of the fee calculations.
(d) Non-electronic payment requests. The Contractor may submit a
non-electronic voucher/invoice using the steps for non-electronic
payment requests described at https://www.nssc.nasa.gov/vendorpayment, when any of the following conditions are met:
(1) The Contracting Officer administering the contract for
payment has determined, in writing, that electronic submission would
be unduly burdensome to the Contractor.
(2) The contract includes provisions allowing the contractor to
submit vouchers or invoices using the steps for non-electronic
payment. In such instances the Contractor agrees to submit non-
electronic payment requests using the method or methods specified in
Section G of the contract.
(e) Improper vouchers/invoices. The NSSC Payment Office will
notify the contractor of any apparent error, defect, or impropriety
in a voucher/invoice within seven calendar days of receipt by the
NSSC Payment Office. Inquiries regarding requests for payment should
be directed to the NSSC as specified in paragraph (b) of this
section.
* * * * *
[FR Doc. 2018-05883 Filed 3-26-18; 8:45 am]
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