[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Rules and Regulations]
[Pages 5717-5719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02134]
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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.
ACTION: Final rule.
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SUMMARY: The Department of Health and Human Services (HHS or the
Department) finalizes its proposed regulation amending 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: This final rule is effective February 2, 2022.
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.
I. Provisions of the Proposed Rule and Analysis of and Response to
Public Comments
In the October 14, 2021 Federal Register (86 FR 57102), HHS
published a proposed rule titled ``Department of Health and Human
Services Acquisition Regulation--Electronic Submission and Processing
of Payment Requests''. In response to the publication of that proposed
rule, HHS received 2 comments from members of the public. In the
following sections of this final rule, HHS includes a summary of the
provisions of the October 14, 2021 proposed rule, the public comments
received, HHS's responses to the
[[Page 5718]]
comments, and any changes made to the regulatory text as a result.
Comment: One commentor provided HHS with strong support for the
proposed rule, indicating the proposed electronic submission and
processing of payment requests will provide a more efficient and cost-
effective solution for HHS and the general public.
Response: HHS appreciates the comments and agrees that the benefits
of electronic submission and processing of payment requests to support
the HHS Electronic Invoicing Implementation Project and HHS's
transition to the Department of the Treasury's Invoice Processing
Platform, will generally outweigh any administrative costs associated
with the transition. The HHS Electronic Invoicing Implementation
Project will bring HHS in compliance with the OMB Memorandum M-15-19,
Improving Government Efficiency and Saving Taxpayer Dollars through
Electronic Invoicing, issued on July 17, 2015 which directed federal
agencies to transition to electronic invoicing for appropriate federal
procurements. Implementation of these solutions will improve citizen
and business facing services, improve consistency, automate workflows,
improve the transparency of invoice status, and support specific
business needs identified across HHS while maintaining compliance with
the OMB and Treasury requirements.
Comment: One commenter raised concern with the timing of the
inclusion of the clause in new and existing contracts and the confusion
that may be caused with tracking payment requests submitted prior to
and after the change in invoice submission requirements.
Response: HHS appreciates the commenters concern and agrees
additional information on the invoice submission process is necessary
to mitigate any administrative confusion for the tracking of payment
requests during the transition period. Since the HHS operating
divisions utilize various accounting systems and their internal
processes and procedures may vary depending on the systems they
utilize, the HHS operating divisions will be issuing Payment
Instructions to their respective contractor community with specific
invoice submission instructions related to their internal policies,
procedures, and processes.
II. Required Rulemaking Analyses
A. Executive Orders 12866 and 13563: Regulatory Planning and Review
Analysis
HHS examined the effects of this rule as required by E.O. 12866,
``Regulatory Planning and Review,'' 58 FR 51,735 (Oct. 4, 1993), E.O.
13563, ``Improving Regulation and Regulatory Review,'' 76 FR 3821,
(Jan. 21, 2011), and the Unfunded Mandates Reform Act of 1995 (Pub. L.
104-4).
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 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. A Regulatory Impact
Analysis must be prepared for major rules with economically significant
effects. The Department has determined that this rulemaking is not a
significant regulatory action under these Executive Orders. In
addition, the Department does not anticipate that this rulemaking will
impose measurable costs on regulated parties. The Office of Management
and Budget (OMB) has waived review on this rule.
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs has determined that
this final rule is not a ``major rule'' as defined by 5 U.S.C. 804(2).
Section 202(a) of the Unfunded Mandates Reform Act of 1995, 2
U.S.C. 1532(a), requires that agencies prepare a written statement,
which includes an assessment of anticipated costs and benefits, before
proposing ``any rule that includes any federal mandate that may result
in the expenditure by state, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more (adjusted
annually for inflation) in any one year.'' In 2020, that threshold was
$158 million. HHS does not expect this rule to exceed the threshold.
B. Regulatory Flexibility Act and Executive Order 13272
The Department has examined the economic implications of this final
rule as required by the Regulatory Flexibility Act (RFA), 5 U.S.C. 601
et seq. The RFA and the Small Business Regulatory Enforcement and
Fairness Act of 1996 (Pub. L. 104-121), which amended the RFA, require
HHS to analyze options for regulatory relief of small businesses. If a
rule has a significant economic effect on a substantial number of small
entities, the Secretary must specifically consider the economic effect
of the rule on small entities and analyze regulatory options that could
lessen the impact of the rule. The Department considers a rule to have
a significant impact on a substantial number of small entities if the
rule has at least a three percent impact on revenue on at least five
percent of small entities. As a result, the Department has determined,
and the Secretary certifies, that this final rule does not have a
significant impact on a substantial number of small entities.
C. Executive Order 13132 (Federalism)
Executive Order 13132, ``Federalism,'' 64 FR 43,255 (Aug. 10,
1999), establishes certain requirements that an agency must meet when
it promulgates a rule that imposes substantial direct requirement costs
on State, local, and tribal governments or has federalism implications.
The Department has determined that this final rule does not impose such
costs or have any federalism implications.
D. Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), the Department has reviewed this final rule and has
determined that it does not create new collections of information.
List of Subjects in 48 CFR Parts 332 and 352
Government procurement.
For the reasons set forth in the preamble, the Department of Health
and Human Services amends 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:
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.
[[Page 5719]]
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
(a) Definitions. As used in this clause--
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)
Xavier Becerra,
Secretary.
[FR Doc. 2022-02134 Filed 2-1-22; 8:45 am]
BILLING CODE 4151-19-P