[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