General Services Administration Acquisition Regulation; 10 Day Payment Clause for Certain Federal Supply Service Contracts and Authorized Price Lists Under Federal Supply Service Schedule Contracts

GENERAL SERVICES ADMINISTRATION

48 CFR Parts 532 and 552

[APD 2800.12A, CHGE 80]

RIN 3090-AG

General Services Administration Acquisition Regulation; 10 Day

Payment Clause for Certain Federal Supply Service Contracts and

Authorized Price Lists Under Federal Supply Service Schedule Contracts

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule adopted as final with changes.

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SUMMARY: The General Services Administration is adopting as final, with

a change, the interim rule published in the Federal Register at 63 FR

12965, March 16, 1998. This final rule amends the General Services

Administration Acquisition Regulation (GSAR) to include Internet-based

invoice processing, in addition to electronic data interchange (EDI)

and electronic funds transfer (EFT), as an accepted electronic commerce

(EC) transaction. This rule also amends the GSAR to allow contractors

under the Federal Supply Service (FSS) multiple award schedule (MAS)

program to print and distribute contract pricelists without prior

written approval from the contracting officer.

DATES: Effective Date: July 16, 1998.

FOR FURTHER INFORMATION CONTACT:

Gloria Sochon, GSA Acquisition Policy Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

The interim rule amended GSAR Part 532 and 552 to provide for

payment of invoices in 10 days under Federal Supply Service (FSS)

contracts in the Stock, Special Order, or Schedules Programs for

contractors who agree to process orders and invoices electronically

using implementation conventions provided by GSA. The rule defined full

cycle EC and provided contract clauses establishing the conditions for

10 day payment of invoices.

No public comments were received in response to the interim GSAR

rule. The interim GSAR rule is being converted to final with a change

to add Internet-based invoice processing to the accepted EC

transactions. This change will increase the base of contractors

eligible to participate in full cycle EC.

In addition, GSA is removing the requirement that contractors under

the FSS MAS program obtain written approval from the contracting

officer prior to printing or distributing contract pricelists. This

change will allow FSS MAS contractors to begin selling their products

through their schedule contracts, and make the contracts available for

Government agencies to use, as quickly as possible. In the past, FSS

MAS contracts all started on a common date. FSS awarded many contracts

in advance of the common start date, allowing time between award and

the start date for the process of approving the pricelists. Many

schedule contracts now have a variable contract period, effective on

the date of award. The process of approving pricelists only delays the

ability of contractors and customers to begin using the established

contracts on that date. Other contractual remedies, including price

adjustment or termination, sufficiently protect the Government's

interest in the event that a contractor issues an incorrect pricelist.

GSA expects this rule will have no significant cost or administrative

burden on contractors or offerors. The rule simplifies administrative

processes by removing the requirement to seek and obtain Government

approval to print or distribute a contract pricelist. It also

eliminates the costs involved in seeking and obtaining the approval.

B. Executive Order 12866

This regulatory action was not subject to Office of Management and

Budget Review under Executive Order 12866, dated September 30, 1993,

and is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

The GSA certifies that this final rule will not 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. The

rule provides that the Government will make payment in 10 days from

receipt of a proper invoice when the contractor agrees to full cycle

EC. Because not all contractors are EDI capable, full cycle EC is not

mandatory. Contractors who do not agree to the terms will be paid under

standard Prompt Payment Act (31 U.S.C. 3903) procedures and suffer no

adverse consequences. Contractors who agree to full cycle EC will

benefit from receiving payment more quickly and being able to

streamline administrative procedures and costs associated with

processing contract orders.

The change to allow contractors under the FSS MAS program to print

and distribute contract pricelists without prior written approval from

the contracting officer is not a significant revision requiring public

comments and therefore the Regulatory Flexibility Act, 5 U.S.C. 601, et

seq., does not apply.

D. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the GSAR do not impose recordkeeping or information collection

requirements, or otherwise collect information from offerors,

contractors, or members of the public that require approval of the

Office of Management and Budget under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 532 and 552

Government procurement.

Accordingly, the interim rule amending 48 CFR Parts 532 and 552

which was published at 63 FR 12965, March 16, 1998, is adopted as a

final rule with the following changes:

1. The authority citation for 48 CFR Parts 532 and 552 continues to

read as follows:

Authority: 40 U.S.C. 486(c).

PART 532--CONTRACT FINANCING

2. Section 532.902 is amended by revising the introductory

paragraph to read as follows:

532.902 Definitions.

``Full cycle electronic commerce'' means the use of electronic data

interchange (EDI), Internet-based invoice processing, and electronic

funds transfer (EFT):

* * * * *

3. Section 532.905 is amended by revising paragraph (c)(2) to read

as follows:

532.905 Invoice payments.

* * * * *

(c) * * *

* * * * *

(2) The 10 day payment terms apply to each order that meet all the

following conditions:

(i) FSS places the order using EDI in accordance with the Trading

Partner Agreement.

(ii) The contractor submit EDI invoices in accordance with the

Trading Partner Agreement or invoices through the GSA Finance Center

Internet-based invoice process.

[[Page 38331]]

(iii) A GSA Finance Center pays the invoices using EFT.

* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

4. Section 552.232-25 is amended by revising the clause date and

deviation citation and revising paragraph (a)(2)(ii) to read as

follows:

552.232-25 Prompt payment.

* * * * *

PROMPT PAYMENT (JUL 1998) (DEVIATION FAR 52.232-25)

* * * * *

(a) Invoice payments.

* * * * *

(2) * * *

* * * * *

(ii) The Contractor must generate and submit to the Government

valid EDI invoices (transaction set 810) or submit invoices through

the GSA Finance Center Internet-based invoice process. Internet-

based invoices must be submitted using procedures provided by GSA.

* * * * *

5. Section 552.232-70 is amended by revising the clause date and

paragraph (b)(2) to read as follows:

552.232-70 Invoice payments.

* * * * *

INVOICE PAYMENTS (JUL 1998)

* * * * *

(b) * * *

* * * * *

(2) The Contractor must generate and submit to the Government

valid EDI invoices (transaction set 810) or submit invoices through

the GSA Finance Center Internet-based invoice process. Internet-

based invoices must be submitted using procedures provided by GSA.

* * * * *

6. Section 552.238-74 is amended by revising the clause data and

paragraph (b) to read as follows:

552.238-74 Submission and distribution of authorized FSS schedule

pricelists.

* * * * *

SUBMISSION AND DISTRIBUTION OF AUTHORIZED FSS SCHEDULE PRICELISTS (JUL

1998)

* * * * *

(b) The Contracting Officer will return one copy of the

Authorized FSS Schedule Pricelist to the Contractor with the

notification of contract award.

* * * * *

Dated: July 8, 1998.

Ida M. Ustad,

Deputy Associate Administrator for Acquisition Policy.

[FR Doc. 98-18816 Filed 7-15-98; 8:45 am]

BILLING CODE 6820-61-M