Federal Acquisition Regulation; Evidence of Shipment in Electronic Data Interchange (EDI) Transactions

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 97-10; FAR Case 97-011; Item IX]

RIN 9000-AH73

Federal Acquisition Regulation; Evidence of Shipment in

Electronic Data Interchange (EDI) Transactions

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 facilitate the use of

electronic data interchange (EDI) transactions and to streamline the

payment process when supplies are purchased on a free on board (f.o.b.)

destination basis with inspection and acceptance at origin.

EFFECTIVE DATE: February 16, 1999.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS

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

pertaining to status or publication schedules. For clarification of

content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-

1900. Please cite FAC 97-10, FAR case 97-011.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule revises the clause at FAR 52.247-48 to facilitate

the use of EDI for submission of invoices under contracts awarded on an

f.o.b. destination basis with inspection and acceptance at origin. The

rule eliminates requirements for contractors to provide evidence of

shipment with invoices for payment under such contracts. However,

contractors are required to retain, and to make available to the

Government for review as necessary, the evidence of shipment

documentation for a period of 3 years after final payment under the

contract.

A proposed rule was published on January 27, 1998 (63 FR 4074). Six

sources submitted comments in response to the proposed rule. All

comments were considered in the development of the final rule.

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.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and

the National Aeronautics and Space Administration certify 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., because the rule applies to a

limited number of contracts, i.e., contracts for the purchase of

supplies on an f.o.b. destination basis with inspection and acceptance

at origin. Therefore, the rule is estimated to affect only a small

number of entities, both large and small.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply

because the final rule contains information collection requirements.

Accordingly, a revised paperwork burden under OMB Clearance 9000-0061

reflecting a slight increase to the hours will be forwarded to the

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

comments concerning this request were invited through a Federal

Register notice published on January 27, 1998. No comments were

received.

List of Subjects in 48 CFR Part 52

Government procurement.

[[Page 70292]]

Dated: December 14, 1998.

Ralph DeStefano,

Acting Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1. The authority citation for 48 CFR Part 52 continues to read as

follows:

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

U.S.C. 2473(c).

2. Section 52.247-48 is revised to read as follows:

52.247-48 F.o.b. Destination--Evidence of Shipment.

As prescribed in 47.305-4(c), insert the following clause:

F.o.b. Destination--Evidence of Shipment (Feb 1999)

(a) If this contract is awarded on a free on board (f.o.b.)

destination basis, the Contractor--

(1) Shall not submit an invoice for payment until the supplies

covered by the invoice have been shipped to the destination; and

(2) Shall retain, and make available to the Government for

review as necessary, the following evidence of shipment

documentation for a period of 3 years after final payment under the

contract:

(i) If transportation is accomplished by common carrier, a

signed copy of the commercial bill of lading for the supplies

covered by the Contractor's invoice, indicating the carrier's intent

to ship the supplies to the destination specified in the contract.

(ii) If transportation is accomplished by parcel post, a copy of

the certificate of mailing.

(iii) If transportation is accomplished by other than common

carrier or parcel post, a copy of the delivery document showing

receipt at the destination specified in the contract.

(b) The Contractor is not required to submit evidence of

shipment documentation with its invoice.

(End of clause)

[FR Doc. 98-33521 Filed 12-16-98; 8:45 am]

BILLING CODE 6820-EP-P