[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:
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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
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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
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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.
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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;
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(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
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(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.
* * * * *
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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