Federal Acquisition Regulation; Payment Due Dates

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 32

[FAC 97-09; FAR Case 97-609; Item IX]

RIN 9000-AI11

Federal Acquisition Regulation; Payment Due Dates

AGENCIES: Department of Defense (DoD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council have agreed on a final rule amending

the Federal Acquisition Regulation (FAR) to clarify that agencies may

authorize amendment of the FAR payment clauses to specify a period

shorter than 30 days for making contract invoice payments, provided

such period is not less than 7 days. 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.

EFFECTIVE DATE: December 29, 1998.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, 1800 F

Street, NW, Washington, DC 20405, (202) 501-4755, for information

pertaining to status or publication schedules. For clarification of

content, contact Mr. Jeremy Olson at (202) 501-0692. Please cite FAC

97-09, FAR case 97-609.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Subpart 32.9 to clarify that agencies

may amend the clauses at FAR 52.232-25, Prompt Payment, and 52.232-26,

Prompt Payment for Fixed-Price Architect-Engineer Contracts, to specify

a period shorter than 30 days (but not less than 7 days) for making

contract invoice payments.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision

within the meaning of FAR 1.501 and Public Law 98-577, and publication

for public comments is not required. However, comments from small

entities concerning the affected FAR subpart will be considered in

accordance with 5

[[Page 58602]]

U.S.C. 610. Such comments must be submitted separately and should cite

5 U.S.C. 601, et seq. (FAC 97-09, FAR case 97-609), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the FAR do not impose recordkeeping or information collection

requirements, or collections of information from offerors, contractors,

or members of the public which require the approval of the Office of

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

List of Subjects in 48 CFR Part 32:

Government procurement.

Dated: October 22, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 32 is amended as set forth below:

1. The authority citation for 48 CFR Part 32 continues to read as

follows:

PART 32--CONTRACT FINANCING

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42

U.S.C. 2473(c).

2. Section 32.905 is amended in paragraph (a) by revising the

introductory text to read as follows:

32.905 Invoice payments.

(a) General. Except as prescribed in paragraphs (b), (c), and (d)

of this section, or as authorized in 32.908(a)(3) or (c)(3), the due

date for making an invoice payment by the designated payment office

shall be as follows:

* * * * *

3. Section 32.908 is amended by adding paragraphs (a)(3) and (c)(3)

to read as follows:

32.908 Contract clauses.

(a) * * *

(3) As provided in 32.904, agency policies and procedures may

authorize amendment of paragraphs (a)(1)(i) and (iii) of the clause to

insert a period shorter than 30 days (but not less than 7 days) for

making contract invoice payments.

* * * * *

(c) * * *

(3) As provided in 32.904, agency policies and procedures may

authorize amendment of paragraph (a)(1)(i) of the clause to insert a

period shorter than 30 days (but not less than 7 days) for making

contract invoice payments.

[FR Doc. 98-28963 Filed 10-29-98; 8:45 am]

BILLING CODE 6820-EP