[Federal Register Volume 77, Number 126 (Friday, June 29, 2012)]
[Rules and Regulations]
[Pages 38731-38734]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15566]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 218, 232 and 252

RIN Number 0750-AH40


Defense Federal Acquisition Regulation Supplement: Updates to 
Wide Area WorkFlow (DFARS Case 2011-D027)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update policies on the 
submission of payment requests and receiving reports in electronic 
format.

DATES: Effective date: June 29, 2012.

FOR FURTHER INFORMATION CONTACT: Ms. Veronica Fallon, 571-372-6087.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule at 76 FR 71928 on November 21, 2011, 
to update DFARS policies and procedures for electronic submission of 
payment requests and receiving reports through Wide Area WorkFlow 
(WAWF) and TRICARE Encounter Data System (TEDS). WAWF, which 
electronically interfaces with the primary DoD payment systems, is the 
accepted DoD system for generating invoices and receiving reports. TEDS 
is an accepted system for processing payment requests for rendered 
TRICARE health care services.
    The capabilities of WAWF have expanded to enable use in additional 
environments by a wider variety of users. As such, this rule expands 
the use of WAWF for submission of payment requests and receiving 
reports and standardizes processes and instructions on the use of WAWF. 
The public comment period closed January 20, 2011. Six respondents 
submitted comments on the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments and the changes made to the rule as 
a result of those comments are provided as follows:

A. Summary of Significant Changes

    Changes to the proposed rule to clarify language were made at 
232.7002 Policy, 232.7004 Prescription, and the Payment Clause at 
252.232-7003, Electronic Submission of Payment Requests and Receiving 
Reports. The new payment instruction clause at 252.232-7006, Wide Area 
WorkFlow Payment Instructions, was changed to more clearly identify 
WAWF as DoD's method to receive payment requests and receiving reports 
and clarify language and to clarify instructions for completion of 
clause fill-ins.

B. Analysis of Public Comments

1. Policies and Procedures
    Comment: Several respondents identified an apparent inconsistency 
with use of the term ``Senior Procurement Executive'' in the 
Supplementary and Background information and the use of the term 
``Service Procurement Executive'' in the proposed change to 
232.7002(a)(6).
    Response: The correct term is ``Senior Procurement Executive,'' 
which is incorporated into the final rule.
    Comment: A respondent observed that language is confusing to the 
reader, in both the proposed change to policy at 232.7002(a)(1) and the 
existing clause at 252.232-7003, Electronic Submission of Payment 
Requests and Receiving Reports, paragraph (c)(4). Specifically, 
according to the respondent, the language is unclear that describes 
what is and is not required to be submitted in electronic form for 
payment requests and receiving reports when purchases are paid for 
using a Governmentwide purchase card.

[[Page 38732]]

    Response: The language of the final rule in both instances noted is 
revised to reflect clarifying language as suggested by the respondent.
    Comment: One respondent requested adding to the rule additional 
procedures at 232.7003 to allow use of an existing Navy system, PayWeb, 
for submitting and processing payment requests by universities and 
nonprofits administered by Office of Naval Research Regional Office.
    Response: Consideration of the respondent's comment resulted in no 
change to the final rule. However, the Department of the Navy plans to 
issue supplementary guidance to address PayWeb, a front-end system that 
feeds Electronic Data Interchange to WAWF.
2. Wide Area WorkFlow Payment Instructions Clause
    Comment: Three comments addressed paragraph (f)(1) of the clause. 
One respondent identified that a listed document type is not an 
allowable document for their office, and that there is a possible 
conflict in language between this paragraph and the note that follows. 
Another respondent provided two comments. First, issues were noted with 
regard to possible scenarios resulting from ambiguous terminology and a 
lack of identified procedures to address said scenarios. Second, the 
respondent is unsure the reader will understand the intended use of the 
note following the paragraph, and requested the note be clarified as to 
its purpose and intended use.
    Response: Regarding the concern of allowable document types, 
applicable instructions to preclude possible conflicts have been 
incorporated into the WAWF Web site. A link to the Web site is included 
in the DFARS clause and in the Procedures Guidance and Information 
(PGI) text. In addition, since it is the contracting officer who 
inserts the document type into the clause, there should be no resultant 
issue. Therefore, no change is made to the language of the rule as a 
result of this comment.
    In response to the concern regarding possible scenarios resulting 
from ambiguous terminology of the text, the language in question is 
deleted, leaving a clear statement. Likewise, deletion of this text 
served to resolve the comment concerning the intended use of the note 
following the paragraph.
    Comment: Two respondents expressed concern with the Routing Data 
Table at paragraph (f)(3). The respondents indicated that the table may 
increase the workload of contracting personnel and increase the 
opportunity for error and inconsistency. Also, the table may not 
account for all circumstances.
    Response: The Routing Data Table along with the instructions for 
the contracting officer to complete the table is retained in the final 
rule; however, several of the respondents' suggestions, which clarified 
a number of table elements, are incorporated into the final rule. DoD 
retained the Routing Data Table and instructions after considering the 
following: (1) The possible variation in contract formats and types; 
(2) the absence of a more acceptable place to identify the local 
processing office in existing contracts; and (3) in order to increase 
the ease of use and facilitate contractor compliance.
    Comment: One respondent recommended revised language for paragraph 
(f)(4) to strengthen the rule in consideration of future audits.
    Response: The data requirements for documentation to be submitted 
with specific actions are well defined elsewhere in the regulations 
(e.g. DFARS Appendix F). Repeating those requirements again in the 
clause would create redundancy and introduce the possibility of 
conflict between updates to Appendix F and the clause language.
    Comment: Two respondents observed that the clause language for 
paragraph (g), Payment request follow-up, is not compatible with 
current systems and does not provide complete information regarding 
availability of invoice status.
    Response: The paragraph (g) clause text is deleted since the 
capability discussed is now provided for in WAWF. Therefore, inclusion 
of the paragraph (g) text is not necessary.
    Comment: Two respondents noted that paragraph (h), WAWF point of 
contact, may not be appropriately included; or if included, a better 
point of contact could be provided.
    Response: Former paragraph (h), which is now paragraph (g) in the 
final rule, is updated to include subparagraphs so that an additional 
point of contact for technical issues, the WAWF helpdesk, is also 
listed.
    Comment: One respondent identified a disparity between language in 
the existing clause at 252.232.7003, Electronic Submission of Payment 
Requests and Receiving Reports, paragraph (b), and the proposed clause 
paragraph (b) regarding ``preferred method'' versus ``contractor 
shall''.
    Response: WAWF is the DoD system to electronically process payment 
requests and receiving reports, therefore the word ``preferred'' was 
deleted in the final rule. Further, in this same paragraph (b); 
language regarding alternate invoicing methods as agreed to by the 
parties is also deleted. The remaining language demonstrates DoD's 
effort to meet the intent of the E-Government Act and the Paperwork 
Reduction Act in minimizing the number of ways contractors must 
interact with the Government.
3. Definitions
    Comment: The value of the definitions at paragraph (a) of the 
proposed new clause at 252.232-70XX was questioned. The respondent 
suggests deleting definitions from the clause as definitions are 
provided as part of the referenced WAWF training.
    Response: Definitions are customarily included in the DFARS clause 
to ensure immediate understanding of the terminology of the clause. As 
suggested, the definition of ``local processing office'' has been 
edited to convey a generic application.
4. Prescription
    Comment: Several comments addressed the proposed change to the 
prescription at 232.7004(a) and following paragraphs (1) through (6). 
The respondents expressed that paragraphs (1) through (6) as a whole 
may be confusing to the reader regarding whether and when use of WAWF 
is required or an exception applies.
    Response: To alleviate potential confusion in the prescription at 
232.7004(a), the proposed references to subparagraphs are deleted.
5. Web Site Links
    Comment: A respondent stated that the Web site links provided were 
not working for the new proposed clause at 252.232-70XX.
    Response: The Web site links included for this final rule are 
active and accurate.

III. 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.

[[Page 38733]]

IV. Regulatory Flexibility Act

    DoD expects that this rule may 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. Therefore, a Final 
Regulatory Flexibility Analysis has been prepared and is summarized as 
follows:
    The rule incorporates WAWF's new capability of capturing receiving 
reports for contracts paid with a Governmentwide commercial purchase 
card and clarifies exceptions to the use of WAWF. The rule also 
consolidates and standardizes instructions to contractors on how to use 
the WAWF application. Furthermore, it eliminates locally defined 
methods that, in some cases, cause confusion and inefficiencies. It 
also incorporates the use of TEDS for medical services requiring Health 
Insurance Portability and Accountability Act data not handled by WAWF.
    DoD made small business awards to 47,000 companies in Fiscal Year 
2011. With the exception of less than 7,000 companies that only 
received awards paid with a purchase card, this rule will simplify 
procedures by allowing contractors to use the same payment process and 
systems for all DoD shipments.
    This rule does not impose any new reporting or record keeping 
requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. No significant alternatives have been identified that 
would accomplish the stated objectives of this rule.

V. Paperwork Reduction Act

    This rule does not impose any new 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 218, 232 and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 218, 232, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 218, 232, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 218--EMERGENCY ACQUISITIONS

0
2. Section 218.170(j) is revised to read as follows:


218.170  Additional acquisition flexibilities.

* * * * *
    (j) Electronic submission and processing of payment requests. 
Exceptions to the use of Wide Area WorkFlow are at 232.7002(a).
* * * * *

PART 232--CONTRACT FINANCING

0
3. Section 232.7002(a) is revised to read as follows:


232.7002  Policy.

    (a)(1) Contractors shall submit payment requests and receiving 
reports in electronic form, except for--
    (i) Classified contracts or purchases when electronic submission 
and processing of payment requests could compromise the safeguarding of 
classified information or national security;
    (ii) Contracts awarded by deployed contracting officers in the 
course of military operations, including, but not limited to, 
contingency operations as defined in 10 U.S.C. 101(a)(13) or 
humanitarian or peacekeeping operations as defined in 10 U.S.C. 
2302(8), or contracts awarded by contracting officers in the conduct of 
emergency operations, such as responses to natural disasters or 
national or civil emergencies, when access to Wide Area WorkFlow by 
those contractors is not feasible;
    (iii) Purchases to support unusual or compelling needs of the type 
described in FAR 6.302-2, when access to Wide Area WorkFlow by those 
contractors is not feasible;
    (iv) Cases in which DoD is unable to receive payment requests or 
possible acceptance in electronic form;
    (v) Cases in which the contracting officer administering the 
contract for payment has determined, in writing, that electronic 
submission would be unduly burdensome to the contractor. In those 
cases, the contracting officer administering the contract shall furnish 
a copy of the determination to their Senior Procurement Executive; and
    (2) When the Governmentwide commercial purchase card is used as the 
method of payment, only submission of the receiving report in 
electronic form is required.
* * * * *

0
4. Section 232.7003 is amended by revising paragraphs (b) and (c) to 
read as follows:


232.7003  Procedures.

* * * * *
    (b) For payment of commercial transportation services provided 
under a Government rate tender or a contract for transportation 
services, the use of a DoD-approved electronic third party payment 
system or other exempted vendor payment/invoicing system (e.g., 
PowerTrack, Transportation Financial Management System, and Cargo and 
Billing System) is permitted.
    (c) For submitting and processing payment requests and receiving 
reports for rendered health care services, use of TRICARE Encounter 
Data System as the electronic format is permitted.

0
5. Section 232.7004 is revised to read as follows:


232.7004  Contract clauses.

    (a) Except as provided in 232.7002(a), use the clause at 252.232-
7003, Electronic Submission of Payment Requests and Receiving Reports, 
in solicitations and contracts.
    (b) Use the clause at 252.232-7006, Wide Area WorkFlow Payment 
Instructions, when 252.232-7003 is used and neither 232.7003 (b) nor 
(c) apply. See PGI 232.7004 for instructions on completing the clause.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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6. Section 252.232-7003 is amended--
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a. In the introductory text by removing the reference ``232.7004'' and 
adding in its place ``232.7004(a)'';
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b. By removing the clause date ``(MAR 2008)'' and adding in its place 
``(JUN 2012)'';
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c. By adding paragraph (a)(4);
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d. By removing paragraphs (c)(1) and (2);
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(e) By redesignating paragraphs (c)(3) and (4) as paragraphs (c)(1) and 
(2), respectively;
0
(f) By removing the word ``or'' at the end of newly redesignated 
paragraph (c)(1);
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(g) By removing the period at the end of newly redesignated paragraph 
(c)(2) and adding a semicolon in its place; and
0
(h) By adding new paragraphs (c)(3) and (4).
    The additions read as follows:


252.232-7003  Electronic Submission of Payment Requests and Receiving 
Reports.

* * * * *
    (a) * * *
    (4) ``Receiving report'' means the data required by the clause at 
252.246-7000, Material Inspection and Receiving Report.
* * * * *

[[Page 38734]]

    (c) * * *
    (3) DoD makes payment for rendered health care services using the 
TRICARE Encounter Data System (TEDS) as the electronic format; or
    (4) When the Governmentwide commercial purchase card is used as the 
method of payment, only submission of the receiving report in 
electronic form is required.
* * * * *

0
7. Section 252.232-7006 is added to read as follows:


252.232-7006  Wide Area WorkFlow Payment Instructions.

    As prescribed in 232.7004(b), use the following clause:

WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (JUN 2012)

    (a) Definitions. As used in this clause--
    Department of Defense Activity Address Code (DoDAAC) is a six 
position code that uniquely identifies a unit, activity, or 
organization.
    Document type means the type of payment request or receiving 
report available for creation in Wide Area WorkFlow (WAWF).
    Local processing office (LPO) is the office responsible for 
payment certification when payment certification is done external to 
the entitlement system.
    (b) Electronic invoicing. The WAWF system is the method to 
electronically process vendor payment requests and receiving 
reports, as authorized by DFARS 252.232-7003, Electronic Submission 
of Payment Requests and Receiving Reports.
    (c) WAWF access. To access WAWF, the Contractor shall--
    (1) Have a designated electronic business point of contact in 
the Central Contractor Registration at https://www.acquisition.gov; 
and
    (2) Be registered to use WAWF at https://wawf.eb.mil/ following 
the step-by-step procedures for self-registration available at this 
Web site.
    (d) WAWF training. The Contractor should follow the training 
instructions of the WAWF Web-Based Training Course and use the 
Practice Training Site before submitting payment requests through 
WAWF. Both can be accessed by selecting the ``Web Based Training'' 
link on the WAWF home page at https://wawf.eb.mil/.
    (e) WAWF methods of document submission. Document submissions 
may be via Web entry, Electronic Data Interchange, or File Transfer 
Protocol.
    (f) WAWF payment instructions. The Contractor must use the 
following information when submitting payment requests and receiving 
reports in WAWF for this contract/order:
    (1) Document type. The Contractor shall use the following 
document type(s).
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(Contracting Officer: Insert applicable document type(s). Note: If a 
``Combo'' document type is identified but not supportable by the 
Contractor's business systems, an ``Invoice'' (stand-alone) and 
``Receiving Report'' (stand-alone) document type may be used 
instead.)
    (2) Inspection/acceptance location. The Contractor shall select 
the following inspection/acceptance location(s) in WAWF, as 
specified by the contracting officer.

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(Contracting Officer: Insert inspection and acceptance locations or 
``Not applicable.'')
    (3) Document routing. The Contractor shall use the information 
in the Routing Data Table below only to fill in applicable fields in 
WAWF when creating payment requests and receiving reports in the 
system.

                           Routing Data Table*
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            Field Name in WAWF               Data to be entered in WAWF
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Pay Official DoDAAC
Issue By DoDAAC
Admin DoDAAC
Inspect By DoDAAC
Ship To Code
Ship From Code
Mark For Code
Service Approver (DoDAAC)
Service Acceptor (DoDAAC)
Accept at Other DoDAAC
LPO DoDAAC
DCAA Auditor DoDAAC
Other DoDAAC(s)
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    (*Contracting Officer: Insert applicable DoDAAC information or 
``See schedule'' if multiple ship to/acceptance locations apply, or 
``Not applicable.'')
    (4) Payment request and supporting documentation. The Contractor 
shall ensure a payment request includes appropriate contract line 
item and subline item descriptions of the work performed or supplies 
delivered, unit price/cost per unit, fee (if applicable), and all 
relevant back-up documentation, as defined in DFARS Appendix F, 
(e.g. timesheets) in support of each payment request.
    (5) WAWF email notifications. The Contractor shall enter the 
email address identified below in the ``Send Additional Email 
Notifications'' field of WAWF once a document is submitted in the 
system.

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(Contracting Officer: Insert applicable email addresses or ``Not 
applicable.'')
    (g) WAWF point of contact. (1) The Contractor may obtain 
clarification regarding invoicing in WAWF from the following 
contracting activity's WAWF point of contact.

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(Contracting Officer: Insert applicable information or ``Not 
applicable.'')
    (2) For technical WAWF help, contact the WAWF helpdesk at 866-
618-5988.

(End of clause)

[FR Doc. 2012-15566 Filed 6-28-12; 8:45 am]
BILLING CODE 5001-06-P