[Federal Register Volume 86, Number 196 (Thursday, October 14, 2021)]
[Proposed Rules]
[Pages 57102-57104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21931]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

48 CFR Parts 332 and 352

RIN 0991-AC32


Department of Health and Human Services Acquisition Regulation--
Electronic Submission and Processing of Payment Requests

AGENCY: Office of the Secretary, Department of Health and Human 
Services.

[[Page 57103]]


ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Health and Human Services (HHS or the 
Department) is proposing to amend the Department's Federal Acquisition 
Regulation Supplement, the HHS Acquisition Regulation (HHSAR), to 
support the HHS Electronic Invoicing Implementation Project and HHS's 
transition to the Department of the Treasury's Invoice Processing 
Platform. This complies with Office of Management and Budget (OMB) 
memorandum M-15-19, Improving Government Efficiency and Saving Taxpayer 
Dollars Through Electronic Invoicing, issued on July 17, 2015.

DATES: To be assured consideration, comments must be received at the 
address provided below, no later than 11:59 p.m. November 15, 2021.

ADDRESSES: You may submit comments through the Federal eRulemaking 
Portal: https://www.regulations.gov. Follow the ``Submit a comment'' 
instructions.
    Warning: Do not include any personally identifiable information 
(such as name, address, or other contact information) or confidential 
business information that you do not want publicly disclosed. All 
comments may be posted on the internet and can be retrieved by most 
internet search engines. No deletions, modifications, or redactions 
will be made to comments received.
    Inspection of Public Comments: All comments received before the 
close of the comment period will be available for viewing by the 
public, including personally identifiable or confidential business 
information that is included in a comment. You may wish to consider 
limiting the amount of personal information that you provide in any 
voluntary public comment submission you make. HHS may withhold 
information provided in comments from public viewing that it determines 
may impact the privacy of an individual or is offensive. For additional 
information, please read the Privacy Act notice that is available via 
the link in the footer of https://www.regulations.gov. Follow the 
search instructions on that Website to view the public comments.

FOR FURTHER INFORMATION CONTACT: Shari Shor, Procurement Analyst, 
Department of Health and Human Services, Office of the Assistant 
Secretary for Financial Resources, Office of Acquisition Policy, 200 
Independence Avenue SW, Washington, DC 20201. Email: 
[email protected]. Telephone: (202) 731-3383.

SUPPLEMENTARY INFORMATION:

I. Background

    The Office of the Assistant Secretary for Financial Resources 
(ASFR) is in the process of implementing the HHS Electronic Invoicing 
Implementation Project in conjunction with the Unified Financial 
Management System team, the HHS Consolidated Acquisition System team, 
the Office of Acquisitions, the Office of Acquisition Business Systems, 
and the Office of Financial Policy. This project is needed to bring HHS 
in compliance with the OMB Memorandum issued on July 17, 2015, which 
directed federal agencies to transition to electronic invoicing for 
appropriate federal procurements. Immediately following the issuance of 
the OMB Memorandum, HHS initiated the project by evaluating different 
solutions, building consensus across the Department, developing a 
business case, and receiving approval from HHS governance bodies.

II. Required Regulatory Analyses

A. Executive Orders 12866 and 13563

    E.O. 12866, ``Regulatory Planning and Review,'' and E.O. 13563, 
``Improving Regulation and Regulatory Review,'' direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if the regulation is necessary, to select regulatory approaches that 
maximize net benefits.
    OMB determined that the rulemaking was not an economically 
significant regulatory action under these E.O.s. The preambles to this 
rule maintained that it primarily described procedural changes that 
would require Department expenditures to implement.

B. Regulatory Flexibility Act

    The Department has examined the economic implications of this 
proposed rule as required by the Regulatory Flexibility Act (RFA), 5 
U.S.C. 601 et seq. The RFA requires an agency to describe the impact of 
a proposed rulemaking on small entities by providing an initial 
regulatory flexibility analysis, unless the agency determines that the 
proposed rule will not have a significant economic impact on a 
substantial number of small entities, provides a factual basis for this 
determination, and proposes to certify the statement. 5 U.S.C. 603(a) 
and 605(b). The Department considers a proposed or final rule to have a 
significant economic impact on a substantial number of small entities 
if it has at least a three percent impact on revenue of at least five 
percent of small entities. The Department has determined, and the 
Secretary certifies, that this proposed rule would not have a 
significant economic impact on the operations of a substantial number 
of small entities.

C. Executive Order 13132 (Federalism)

    E.O. 13132, ``Federalism,'' establishes certain requirements that 
an agency must meet when it promulgates a rule that imposes substantial 
direct requirement costs on State and local governments or has 
Federalism implications. The Department has determined that this 
proposed rule would not impose such costs or have any federalism 
implications.

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

    HHS has analyzed this proposed rule in accordance with the 
principles set forth in E.O. 13175. HHS has tentatively determined that 
the proposed rule does not contain policies that would have a 
substantial direct effect on one or more Indian Tribes, on the 
relationship between the Federal Government and Indian Tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian Tribes. In accordance with the Department's 
Tribal consultation policy, the Department solicits comments from 
tribal officials on any potential impact on Indian Tribes from this 
proposed action.

E. National Environmental Policy Act

    HHS had determined that this proposed rule would not have a 
significant impact on the environment.

F. Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 and its 
implementing regulations, 44 U.S.C. 3501-3521; 5 CFR part 1320, 
appendix A.1, the Department has reviewed this proposed rule and has 
determined that it proposes no new collections of information.

List of Subjects in 48 CFR Parts 332 and 335

    Government procurement.

    Accordingly, HHS proposes to amend 48 CFR chapter 3, parts 332 and 
352, as follows:

PART 332--CONTRACT FINANCING

0
1. The authority citation for part 332 continues to read as follows:

    Authority:  5 U.S.C. 301; 40 U.S.C. 121(c)(2).

0
2. Add subpart 332.70 to read as follows:

[[Page 57104]]

Subpart 332.70--Electronic Submission and Processing of Payment 
Requests
Sec.
332.7000 Scope of subpart.
332.7001 Definitions.
332.7002 Policy.
332.7003 Contract clause.

Subpart 332.70--Electronic Submission and Processing of Payment 
Requests


332.7000   Scope of subpart.

    This subpart prescribes policies and procedures for electronic 
submission and processing of payment requests.


332.7001   Definitions.

    Payment request, as used in this subpart, is defined as a bill, 
voucher, invoice, or request for contract financing payment with 
associated supporting documentation. The payment request must comply 
with the requirements identified in FAR 32.905(b), Content of invoices, 
and the applicable Payment clause included in this contract.


332.7002   Policy.

    (a) Contracts shall require the electronic submission of payment 
requests, except for--
    (1) Purchases paid for with a Government-wide commercial purchase 
card; and
    (2) Classified contracts or purchases when electronic submission 
and processing of payment requests could compromise classified 
information or national security.
    (b) Where a contract otherwise requires the electronic submission 
of invoices, the Contracting Officer may authorize alternate procedures 
only if the Contracting Officer makes a written determination that:
    (1) The Department of Health and Human Services (HHS) is unable to 
receive electronic payment requests or provide acceptance 
electronically;
    (2) The contractor has demonstrated that electronic submission 
would be unduly burdensome; or
    (3) The contractor is in the process of transitioning to electronic 
submission of payment requests, but needs additional time to complete 
such transition. Authorizations granted on the basis of this paragraph 
(b)(3) must specify a date by which the contractor will transition to 
electronic submission.
    (c) Except as provided in paragraphs (a) and (b) of this section, 
HHS officials shall process electronic payment submissions through the 
Department of the Treasury Invoice Processing Platform or successor 
system.
    (d) If the requirement for electronic submission of payment 
requests is waived under paragraph (a)(2) or (b) of this section, the 
contract or alternate payment authorization, as applicable, shall 
specify the form and method of payment request submission.


332.7003   Contract clause.

    Except as provided in 332.7002(a), use the clause at 352.232-71, 
Electronic Submission of Payment Requests, in all solicitations and 
contracts.

PART 352--SOLICITATIONS PROVISIONS AND CONTRACT CLAUSES

0
3. The authority citation for part 352 continues to read as follows:

    Authority:  5 U.S.C. 301; 40 U.S.C. 121(c)(2).

0
4. Add section 352.232-71 to read as follows:


352.232-71   Electronic submission of payment requests

    As prescribed in HHSAR 332.7003, use the following clause:

Electronic Submission of Payment Requests (DATE TBD)

    (a) Definitions. As used in this clause--
    (1) ``Payment request'' means a bill, voucher, invoice, or 
request for contract financing payment with associated supporting 
documentation. The payment request must comply with the requirements 
identified in FAR 32.905(b), ``Content of Invoices'' and the 
applicable Payment clause included in this contract.
    (b) Except as provided in paragraph (c) of this clause, the 
Contractor shall submit payment requests electronically using the 
Department of Treasury Invoice Processing Platform (IPP) or 
successor system. Information regarding IPP, including IPP Customer 
Support contact information, is available at www.ipp.gov or any 
successor site.
    (c) The Contractor may submit payment requests using other than 
IPP only when the Contracting Officer authorizes alternate 
procedures in writing in accordance with HHS procedures.
    (d) If alternate payment procedures are authorized, the 
Contractor shall include a copy of the Contracting Officer's written 
authorization with each payment request.
(End of Clause)

    Dated: October 4, 2021.
Xavier Becerra,
Secretary.
[FR Doc. 2021-21931 Filed 10-13-21; 8:45 am]
BILLING CODE 4151-19-P