[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Rules and Regulations]
[Pages 63143-63145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22046]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1816, 1832, 1842, and 1852
RIN 2700-AE34
NASA Federal Acquisition Regulation Supplement: Revised Voucher
Submission & Payment Process (NFS Case 2016-N025)
AGENCY: National Aeronautics and Space Administration.
ACTION: Interim rule.
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SUMMARY: NASA is issuing an interim rule amending the NASA Federal
Acquisition Regulation Supplement (NFS) to implement revisions to the
voucher submittal and payment process. These revisions are necessary
due to section 893 of the National Defense Authorization Act for Fiscal
Year 2016 prohibiting the Defense Contract Audit Agency (DCAA) from
performing audit work for non-Defense Agencies. NASA had delegated to
DCAA the task of reviewing contractor requests for payment under NASA
cost-type contracts.
DATES:
Effective: September 14, 2016.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before November 14, 2016, to
be considered in the formation of a final rule.
ADDRESSES: Submit comments identified by NFS Case 2016-N025, using any
of the following methods:
[cir] Regulations.gov: http://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``NFS Case 2016-N025''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``NFS Case
2016-N025.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``NFS Case 2016-N025'' on your attached document.
[cir] Email: [email protected]. Include NFS Case 2016-N025 in
the subject line of the message.
[cir] Fax: (202) 358-3082.
[cir] Mail: National Aeronautics and Space Administration,
Headquarters, Office of Procurement, Contract and Grant Policy
Division, Attn: John J. Lopez, LP-011, 300 E Street SW., Washington, DC
20546-0001.
FOR FURTHER INFORMATION CONTACT: Mr. John J. Lopez, NASA HQ, Office of
Procurement, Contract and Grant Policy Division, LP-011, 300 E Street
SW., Washington, DC 20456-0001. Telephone 202-358-3740; facsimile 202-
358-3082.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule revises the NFS to implement revisions to the
voucher submittal and payment process. These revisions are necessary
due to section 893 of the National Defense Authorization Act for Fiscal
Year 2016 (Pub. L. 114-92) prohibiting DCAA from performing audit work
for non-Defense Agencies. Section 893 prohibits DCAA from performing
audit work for non-Defense Agencies until DCAA's backlog of incurred
cost audits is below 18 months. DCAA's current backlog of cost audits
is greater than 18 months. NASA had delegated to DCAA the task of
reviewing contractor requests for payment under its cost-type
contracts. As a result of section 893, DCAA has ceased cost voucher
audit support to NASA, in turn, jeopardizing timely payment to
contractors for work performed. NASA has revised its cost voucher
submission and payment process to ensure the continued prompt payment
to its suppliers. Accordingly, the NFS needs to be immediately revised
to implement procedural changes to minimize cost voucher submission and
payment delays to NASA suppliers as well the potential accrual of
Government interest payments to contractors.
[[Page 63144]]
II. Discussion
Sections of the NFS are being revised to implement changes to
NASA's voucher submission and payment process. Specifically, NASA is--
Deleting the outdated clause prescription at NFS 1816.307-
70(e) and associated clause at NFS 1852.216-87 relating to the
submission of vouchers for payment;
Establishing a new clause prescription at NFS 1832.908-70
and associated clause at 1852.232-80 relative to the submission of
vouchers for payment that reflects electronic submittal of vouchers and
NASA resources processing these payment requests versus DCAA;
Deleting NFS section 1842.7101(a) and (b) because DCAA is
no longer processing vouchers for NASA; thus this guidance is no longer
needed; and
Deleting NFS section 1842.7101(c) because the requirement
of submitting additional hard copies of Standard Form 1034 and Standard
Form 1035A to the General Services Administration (GSA) is no longer
required. This outdated process is being replaced by electronic
submissions.
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.
IV. Regulatory Flexibility Act
NASA does not expect this interim rule to 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.,
because the guidance will not create additional burden to the
contractor but rather the rule is intended to update the current
voucher submission process at NASA, which will result in fewer voucher
rejections, rework, and payment delays. However, an initial regulatory
flexibility analysis has been performed and is summarized as follows:
NASA is revising the NFS to implement revisions to the voucher
submittal and payment process. These revisions are necessary due to
section 893 of the National Defense Authorization Act for Fiscal Year
2016 (Pub. L. 114-92) prohibiting DCAA from performing audit work for
non-Defense Agencies.
The objective of this rule is to remove the outdated NFS payment
clause and associated prescription relative to the NASA voucher
submittal and payment process and replace with a new clause that will
revamp NASA's cost voucher submission and payment process to ensure the
continued prompt payment to its suppliers. The revision will also
minimize cost voucher submission and payment delays to NASA suppliers
as well the potential accrual of Government interest payments to
contractors.
This rule would apply to contractor requests for payment under cost
reimbursement contracts. An analysis of data in the Federal Procurement
Data System (FPDS) revealed that cost reimbursement contracts are
primarily awarded to large businesses. FPDS data compiled over the past
three fiscal years (FY2013 through FY2015) showed an average of 311
active cost reimbursement NASA contracts, of which 141 (approximately
45%) were awarded to small businesses. However, there is no significant
economic or administrative cost impact to small or large businesses
because the rule will have a positive benefit in the way of fewer
voucher rejections, rework, and payment delays. The rule does not
contain additional reporting requirements, recordkeeping, or other
compliance requirements.
The rule does not duplicate, overlap, or conflict with any other
Federal rules. No alternative approaches were considered, because this
approach will have minimal impact on small entities.
NASA invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities. NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this rule
in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (NFS Case 2016-N025),
in correspondence.
V. Paperwork Reduction Act
The rule contains 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); however, these changes to the NFS
do not impose additional information collection requirements to the
paperwork burden previously approved under OMB Control Number 9000-
0070, entitled Payments--FAR Sections Affected: 52.232-1 thru 52.232-4
and 52.232-6 thru 52.232-11.
VI. Determination To Issue an Interim Rule
A determination has been made under the authority of the
Administrator of the National Aeronautics and Space Administration that
urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action to revise the
submission of vouchers for payment process is necessary to avert the
rejection of contractor payment requests and potential payment delays,
which will result in annual cost avoidance to the Government of
approximately $383,000. In addition, we anticipate the Government
potentially avoiding approximately $134,000 in late payment interest
charges.
Section 893 of the National Defense Authorization Act for Fiscal
Year 2016 prohibits the Defense Contract Audit Agency (DCAA) from
performing audit work for non-Defense Agencies. NASA had delegated to
DCAA the task of reviewing contractor requests for payment under our
cost type contracts. This interim rule is needed to ensure that
contractors have the correct procedures for submitting vouchers for
payment. The existing contract payment clause has submittal of vouchers
to DCAA for review, however, DCAA is no longer reviewing and approving
contractor payment requests for NASA. Furthermore, if contractors
continue to submit payment requests to DCAA, DCAA will reject them
causing a delay in contractor payments. In turn, this will cause
additional effort for contractors to rework and resubmit the voucher
for payment. Immediate implementation of this rule will prevent
unnecessary rework and resubmission of payment requests by the
contractor and preclude delayed payments resulting in annual cost
avoidance of approximately $383,000. This interim rule ensures prompt
awareness of and compliance by contractors with the new submission of
vouchers procedures. However, pursuant to 41 U.S.C. 1707 and FAR 1.501-
3(b), NASA will consider public comments received in response to this
interim rule in the formation of the final rule.
[[Page 63145]]
List of Subjects in 48 CFR Parts 1816, 1832, 1842, and 1852
Government procurement.
Manuel Quinones,
NASA FAR Supplement Manager.
Accordingly, 48 CFR parts 1816, 1832, 1842, and 1852 are amended as
follows:
0
1. The authority citation for parts 1816, 1832, and 1852 continues to
read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
PART 1816--TYPES OF CONTRACTS
1816.307-70 [Amended]
0
2. Amend section 1816.307-70 by removing and reserving paragraph (e).
PART 1832--CONTRACT FINANCING
0
3. Add subpart 1832.9 to read as follows:
Subpart 1832.9--Prompt Payment
Sec.
1832.908 Contract clauses.
1832.908-70 Submission of Vouchers.
Subpart 1832.9--Prompt Payment
1832.908 Contract clauses.
1832.908-70 Submission of Vouchers.
Insert clause 1852.232-80, Submission of Vouchers for Payment, in
all cost-reimbursement solicitations and contracts.
PART 1842--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
4. The authority citation for part 1842 is revised to read as follows:
Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.
Subpart 1842.71 [Removed and Reserved]
0
5. Remove and reserve subpart 1842.71.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1852.216-87 [Removed and Reserved]
0
6. Remove and reserve section 1852.216-87.
0
7. Add section 1852.232-80 to read as follows:
1852.232-80 Submission of Vouchers for Payment.
As prescribed in 1832.908-70, insert the following clause:
Submission of Vouchers for Payment (Sep 2016)
(a) The designated payment office is the NASA Shared Services
Center (NSSC) located at FMD Accounts Payable, Bldg. 1111, Jerry
Hlass Road, Stennis Space Center, MS 39529.
(b) Except for classified vouchers, the Contractor shall submit
all vouchers electronically using the steps described at NSSC's
Vendor Payment information Web site at: https://www.nssc.nasa.gov/vendorpayment. Please contact the NSSC Customer Contact Center at 1-
877-NSSC123 (1-877-677-2123) with any additional questions or
comments.
(c) Payment requests. (1) The payment periods designated in the
payment clause(s) contained in this contract will begin on the date
a proper request for payment is received by the NSSC payment office
specified in paragraphs (a) and (b) of this section. Vouchers shall
be prepared in accordance with the guidance provided by the NSSC at
the following Web site: https://answers.nssc.nasa.gov/app/answers/detail/a_id/6643.
(2) Vouchers shall include the items delineated in FAR 32.905(b)
supported by relevant back-up documentation. Back-up documentation
shall include at a minimum, the following information:
(i) Breakdown of billed labor costs and associated contractor
generated supporting documentation for billed direct labor costs to
include rates used and number of hours incurred.
(ii) Breakdown of billed other direct costs (ODCs) and
associated contractor generated supporting documentation for billed
ODCs.
(iii) Indirect rate(s) used to calculate the amount of billed
indirect expenses.
(d) Non-electronic payment. The Contractor may submit a voucher
using other than the steps described at NSSC's Vendor Payment
information through any of the means described at https://www.nssc.nasa.gov/vendorpayment, if any of the following conditions
are met:
(1) The Contracting Officer administering the contract for
payment has determined, in writing, that electronic submission would
be unduly burdensome to the Contractor. In such cases, the
Contractor shall include a copy of the Contracting Officer's
determination with each request for payment when the Government-wide
commercial purchase card is used as the method of payment.
(2) The contract includes provision allowing the contractor to
submit vouchers using other than the steps prescribed at NSSC's
Vendor Payment information Web site. In such instances, the
Contractor agrees to submit non-electronic payment requests using
the method or methods specified in Section G of the contract.
(e) Improper vouchers. The NSSC Payment Office will notify the
contractor of any apparent error, defect, or impropriety in a
voucher within seven calendar days of receipt by the NSSC Payment
Office. Inquiries regarding requests for payment should be directed
to the NSSC as specified in paragraph (b) of this section.
(f) Other payment clauses. In addition to the requirements of
this clause, the Contractor shall meet the requirements of the
appropriate payment clauses in this contract when submitting payment
requests.
(g) In the event that amounts are withheld from payment in
accordance with provisions of this contract, a separate payment
request for the amount withheld will be required before payment for
that amount may be made.
(End of clause)
[FR Doc. 2016-22046 Filed 9-13-16; 8:45 am]
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