[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:

[[Page 13115]]


0
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]
 BILLING CODE 7510-13-P