Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Proposed Rules 30661 

proposed rule that would meet the 

proposed objectives. 

VI. Paperwork Reduction Act 

The rule does not contain any 

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 217 and 

252 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 217 and 252 

are proposed to be amended as follows: 

■ 1. The authority citation for parts 217 

and 252 continues to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 217—SPECIAL CONTRACTING 

METHODS 

217.208–70 [Amended] 

■ 2. In section 217.208–70, amend 

paragraph (b)(1), by removing 

‘‘percentage’’ and adding ‘‘percentage or 

quantity’’ in its place. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Amend section 252.217–7001 by— 

■ a. Removing the clause date of ‘‘(AUG 

1992)’’ and adding ‘‘(DATE)’’ in its 

place; 

■ b. Revising paragraph (a)(1); 

■ c. In paragraph (b)(1), removing 

‘‘Production Surge Plan (DI–MGMT)’’ 

and adding ‘‘(Capabilities Analysis Plan 

(CAP)’’ in its place; and 

■ d. In paragraph (b)(2), removing 

‘‘Production Surge Plan’’ and adding 

‘‘CAP’’ in its place. 

The revision reads as follows: 

252.217–7001 Surge Option. 

* * * * * 

(a) * * * 

(1) Increase the quantity of supplies or 

services called for under this contract by 

no more than ll percent or ll

[insert quantity and description of 

services or supplies to be increased]; 

and/or 

* * * * * 

[FR Doc. 2018–14040 Filed 6–28–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 232, 246, 252, and 

Appendix F to Chapter 2 

[Docket DARS–2018–0037] 

RIN 0750–AJ44 

Defense Federal Acquisition 

Regulation Supplement: Electronic 

Submission and Processing of 

Payment Requests and Receiving 

Reports (DFARS Case 2016–D032) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

clarify policies and procedures for 

submission of payment requests and 

receiving reports in electronic form. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

August 28, 2018, to be considered in the 

formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2016–D032, 

using any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for 

‘‘DFARS Case 2016–D032.’’ Select 

‘‘Comment Now’’ and follow the 

instructions provided to submit a 

comment. Please include ‘‘DFARS Case 

2016–D032’’ on any attached 

documents. 

• Email: osd.dfars@mail.mil. Include 

DFARS Case 2016–D032 in the subject 

line of the message. 

• Fax: 571–372–6094. 

• Mail: Defense Acquisition 

Regulations System, Attn: Ms. Jennifer 

D. Johnson, OUSD (A&S) DPAP/DARS, 

Room 3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately 2 to 3 days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, telephone 571– 

372–6100. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This proposed rule clarifies and, 

where necessary, updates policies and 

procedures for providing electronic 

payment-related documents and for 

processing payment requests and 

receiving reports in Wide Area 

WorkFlow (WAWF). Title 10 of the 

United States Code (U.S.C.), section 

2227, Electronic Submission and 

Processing of Claims for Contract 

Payments, requires that any claim for 

payment under a DoD contract be in 

electronic format. If electronic 

submission is unduly burdensome, 10 

U.S.C. 2227 allows an exemption. DoD 

published a final rule in the Federal 

Register at 77 FR 38731 on June 29, 

2012 (DFARS Case 2011–D027), to 

update DFARS policies and procedures 

for electronic submission of payment 

requests and receiving reports and 

established WAWF as the accepted DoD 

system for processing invoices and 

receiving reports. 

Some contractors have been 

prevented from using WAWF for some 

contracts because of a misinterpretation 

of the exemptions in DFARS subpart 

232.70, Electronic Submission and 

Processing of Payment Requests and 

Receiving Reports. This proposed rule 

clarifies those exemptions and allows 

contractors to request permission from 

the contracting officer, in writing, to 

submit payment requests and receiving 

reports using temporary alternative 

methods, other than in electronic form. 

II. Discussion and Analysis 

DoD is proposing to amend DFARS 

parts 232, 246, 252, and Appendix F to 

clarify and, where necessary, update the 

policies and procedures for electronic 

submission of payment requests and 

receiving reports. The following is a 

summary of the proposed changes: 

• DFARS subpart 232.70, Electronic 

Submission and Processing of Payment 

Requests and Receiving Reports. 

Definitions of the terms ‘‘electronic 

form,’’ ‘‘payment request,’’ and 

‘‘receiving report’’ are inserted in their 

entirety in lieu of the reference stating 

that the terms are defined in the clause 

at DFARS 252.232–7003, Electronic 

Submission of Payment Requests. The 

policy on exceptions to submission of 

payment requests in electronic form is 

clarified by deleting the current list of 

exceptions at DFARS 232.7002(a)(ii) and 

providing a more general exception for 

cases in which contractor submission of 

electronic payment requests is not 

feasible (e.g., when contract 

performance is in a contingency or 

austere environment where internet 

connectivity is not available). This 


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clarification is necessary to ensure that 

the exceptions at DFARS 232.7002(a)(ii) 

are not interpreted as prohibitions 

against use or submission of payment 

requests in WAWF. The current 

language at DFARS 232.7002(a)(ii) is 

clear in that the use of WAWF is 

required unless access to WAWF by 

contractors is not feasible. The revised 

language in this rule does not change 

that basic policy. In addition, other text 

is relocated within the subpart in order 

to separate policy from procedures. 

• DFARS 246.370, Material 

Inspection and Receiving Report. This 

section, which contains the prescription 

for the clause at DFARS 252.246–7000, 

Material Inspection and Receiving 

Reports, is deleted, because the clause is 

being deleted. 

• DFARS 246.471, Authorizing 

Shipment of Supplies. This section is 

revised to prevent the use of alternative 

procedures (e.g., allowing the contractor 

to release supplies for shipment) for 

foreign military sales contracts. Use of 

alternative procedures results in no 

signed receiving report with the packing 

list, which delays the shipment 

significantly and may lead to 

termination of the contract for 

convenience. 

• DFARS 252.232–7003, Electronic 

Submission and Processing of Payment 

Requests and Receiving Reports. This 

clause is revised to clarify that a 

contractor may use methods other than 

WAWF to submit a payment request and 

receiving report when the contracting 

officer has authorized and provided 

instructions for the use of nonelectronic 

methods in the contract administration 

data section of the contract. The 

requirement for contractors to submit a 

receiving report at the time of each 

delivery of supplies or services under a 

contract is relocated to this clause from 

DFARS 252.246–7000, which is being 

deleted. In addition, policy statements 

are removed from the definition of 

‘‘electronic form;’’ and in the definition 

of ‘‘receiving report,’’ a reference to the 

deleted clause 252.246–7000 is replaced 

with a reference to DFARS Appendix F, 

Material Inspection and Receiving 

Report. 

• DFARS 252.232–7006, Wide Area 

WorkFlow Payment Instructions. This 

clause is revised to clarify the type of 

payment request to be used for cost-type 

line items, fixed-price line items, and 

various contract financing payments. 

The use of the WAWF ‘‘combo’’ 

document type and the use of 

Department of Defense Activity Address 

Codes are also clarified. The 

requirement to ensure a receiving report 

complies with DFARS Appendix F is 

relocated to this clause from DFARS 

252.246–7000, which is being deleted. 

• DFARS 252.246–7000, Material 

Inspection and Receiving Report. This 

clause is deleted in its entirety because 

its procedures predate the WAWF 

automated procedures and processes. 

Therefore, much of this clause is now 

obsolete. The relevant text has been 

relocated to DFARS 252.232–7003, 

Electronic Submission and Processing of 

Payment Requests and Receiving 

Reports. 

• Appendix F: Material Inspection 

and Receiving Report. This appendix is 

revised to remove a reference to the 

deleted clause 242.246–7000, to clarify 

the requirement to enter unit prices on 

WAWF receiving reports, and to include 

the requirement to enter estimated 

prices for foreign military sales 

shipments if actual prices are not 

available. Invoice submission and 

packing list instructions are also 

clarified. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT) and for Commercial 

Items, Including Commercially 

Available Off-the-Shelf (COTS) Items 

This rule proposes to amend the 

clauses at DFARS 252.232–7003, 

Electronic Submission and Processing of 

Payment Requests and Receiving 

Reports, and 252.232–7006, Wide Area 

WorkFlow Payment Instructions. The 

objective of the rule is to clarify and, 

where necessary, update the policies 

and procedures for electronic 

submission of payment requests and 

receiving reports and amends the two 

clauses listed below. 

DoD plans to continue to apply both 

clauses to contracts at or below the SAT 

and to the acquisition of commercial 

items, including COTS items, as defined 

at FAR 2.101. This rule clarifies and 

updates policies and procedures for 

electronic submission of payment 

requests and receiving reports. Not 

applying this guidance to contracts at or 

below the SAT and for the acquisition 

of commercial items, including COTS 

items, would exclude contracts 

intended to be covered by this rule and 

undermine the overarching purpose of 

the rule. Consequently, DoD plans to 

apply the rule to contracts at or below 

the SAT and for the acquisition of 

commercial items, including COTS 

items. 

IV. 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, 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. 

V. Executive Order 13771 

This rule is not an E.O. 13771, 

Reducing Regulation and Controlling 

Regulatory Costs, regulatory action, 

because this rule is not significant under 

E.O. 12866. 

VI. Regulatory Flexibility Act 

DoD does not expect this proposed 

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 basic requirement 

for electronic invoicing (a statutory 

requirement under 10 U.S.C. 2227) 

already exists. However, an initial 

regulatory flexibility analysis has been 

performed. 

The objective of the rule is to clarify 

and, where necessary, update policies 

and procedures for submission of 

payment requests and receiving reports 

in electronic form, which is 

accomplished through Wide Area 

WorkFlow (WAWF). The requirement 

for DoD contractors to submit payment 

requests in electronic form is already a 

requirement in existing DFARS clauses. 

This rule clarifies the exemptions in 

DFARS subpart 232.70, Electronic 

Submission and Processing of Payment 

Requests and Receiving Reports. 

In fiscal year 2016, approximately 

71,910 small businesses were registered 

to use WAWF. 

This rule allows contractors to request 

permission, in writing, to submit 

payment requests and receiving reports 

using methods other than WAWF. Most 

small businesses that are DoD 

contractors are expected to prefer 

WAWF over other methods because of 

the advantages of using WAWF. 

Therefore, DoD estimates that 

approximately 70 small businesses may 

submit, on an annual basis, one request 

each for use of a temporary alternative 

method of submission of payment 

requests and receiving reports. 

The rule does not duplicate, overlap, 

or conflict with any other Federal rules. 

There are no known significant 


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alternative approaches to the rule that 

would meet the requirements. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. DoD 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 

(DFARS Case 2016–D032), in 

correspondence. 

VIII. Paperwork Reduction Act 

The paperwork Reduction Act (44 

U.S.C. chapter 35) does apply; however, 

these proposed changes to the DFARS 

do not impose additional information 

collection requirements to the 

paperwork burden previously approved 

under Office of Management and Budget 

(OMB) Control Number 0704–0248, 

Defense Federal Acquisition Regulation 

Supplement, Appendix F, Inspection 

and Receiving Report. 

List of Subjects in 48 CFR Parts 232, 

246, 252, and Appendix F to Chapter 2 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 232, 246, 252, 

and appendix F to chapter 2 are 

proposed to be amended as follows: 

■ 1. The authority citation for parts 232, 

246, 252, and appendix F to chapter 2 

continues to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 232—CONTRACT FINANCING 

■ 2. Revise section 232.7001 to read as 

follows: 

232.7001 Definitions. 

As used in this subpart— 

Electronic form means any automated 

system that transmits information 

electronically from the initiating system 

to affected systems. 

Payment request means any request 

for contract financing payment or 

invoice payment submitted by the 

contractor under a contract or task or 

delivery order. 

Receiving report means the data 

prepared in the manner and to the 

extent required by Appendix F, Material 

Inspection and Receiving Report, of the 

DFARS. 

■ 3. Revise section 232.7002 to read as 

follows: 

232.7002 Policy. 

(a) Payment requests and receiving 

reports are required to be submitted in 

electronic form, except for— 

(1) Classified contracts or purchases 

when electronic submission and 

processing of payment requests and 

receiving reports could compromise the 

safeguarding of classified information or 

national security; 

(2) Cases in which contractor 

submission of electronic payment 

requests and receiving reports is not 

feasible (e.g., when contract 

performance is in an environment 

where internet connectivity is not 

available); 

(3) Cases in which DoD is unable to 

receive payment requests or provide 

acceptance in electronic form; 

(4) Cases in which [the contractor has 

requested permission in writing to 

submit payment requests and receiving 

reports by nonelectronic means, and] 

the contracting officer [has provided 

instructions for a temporary alternative 

method of submission of payment 

requests and receiving reports in the 

contract administration data section of 

the contract or task or delivery order 

(e.g., section G, an addendum to FAR 

52.212–4, or applicable clause); and 

(5) When the Governmentwide 

commercial purchase card is used as the 

method of payment, only submission of 

the receiving report in electronic form is 

required. 

(b)(1) The only acceptable electronic 

form for submission of payment 

requests and receiving reports is Wide 

Area WorkFlow (https://wawf.eb.mil/), 

except as follows: 

(i) For payment of commercial 

transportation services provided under a 

Government rate tender, contract, or 

task or delivery order 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. 

(ii) For submitting and processing 

payment requests and receiving reports 

for contracts or task or delivery orders 

for rendered health care services, the 

use of TRICARE Encounter Data System 

as the electronic form is permitted. 

(2) Facsimile, email, and scanned 

documents are not acceptable electronic 

forms of payment requests or receiving 

reports. 

■ 4. Revise section 232.7003 to read as 

follows: 

232.7003 Procedures. 

(a) DoD officials receiving payment 

requests in electronic form shall process 

the payment requests in electronic form. 

The WAWF system provides the method 

to electronically process payment 

requests and receiving reports. 

(1) Documents necessary for payment, 

such as receiving reports, invoice 

approvals, contracts, contract 

modifications, and required 

certifications, shall also be processed in 

electronic form. 

(2) Scanned documents and other 

commonly used file formats are only 

acceptable for processing supporting 

documentation. 

(b) If one of the exceptions to 

submission in electronic form at 

232.7002(a) applies, the contracting 

officer shall— 

(1) Consult the payment office and the 

contract administration office regarding 

the alternative method to be used for 

submission of payment requests or 

receiving reports (e.g., facsimile or 

conventional mail); and 

(2) Provide procedures for invoicing 

in the contract administration data 

section of the contract or task or 

delivery order (e.g., section G, an 

addendum to FAR 52.212–4, or 

applicable clause) for submission of 

invoices by nonelectronic means. If 

submission of invoices by nonelectronic 

means is temporary, the procedures 

should specify the time period for 

which they apply. 

■ 5. Revise section 232.7004 to read as 

follows: 

232.7004 Contract clauses. 

(a) Unless an exception to submission 

in electronic form at 232.7002(a) applies 

and instructions for invoices are 

contained in the contract administration 

data section of the contract or task or 

delivery order, use the clause at 

252.232–7003, Electronic Submission of 

Payment Requests and Receiving 

Reports, in solicitations and contracts, 

including solicitations and contracts 

using FAR part 12 procedures for the 

acquisition of commercial items. 

(b) Use the clause at 252.232–7006, 

Wide Area WorkFlow Payment 

Instructions, in solicitations and 

contracts or task or delivery orders, 

including solicitations and contracts 

using FAR part 12 procedures for the 

acquisition of commercial items, when 

252.232–7003 is used and none of the 

exceptions at 232.7002(b)(1) apply. See 

PGI 232.7004 for instructions on 

completing the clause. 

PART 246—QUALITY ASSURANCE 

246.370 [Removed] 

■ 6. Remove section 246.370. 


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246.371 [Redesignated as 246.370 and 

Amended] 

■ 6. Redesignate section 246.371 as 

section 246.370 and remove ‘‘PGI 

246.371’’ and add ‘‘PGI 246.370’’ in its 

place. 

■ 7. Amend section 246.471 by— 

■ a. Redesignating paragraphs (b)(2) and 

(3) as paragraphs (b)(3) and (4); 

■ b. In the newly redesignated 

paragraph (b)(3), removing ‘‘paragraph 

(b)(1)’’ and adding ‘‘paragraph (b)(2)’’ in 

its place. 

■ c. Redesignating paragraph (b)(1) as 

paragraph (b)(2); and 

■ d. Adding a new paragraph (b)(1) to 

read as follows: 

246.471 Authorizing shipment of supplies. 

* * * * * 

(b) * * * 

(1) For foreign military sales (FMS) 

contracts, do not use alternative 

procedures. 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 8. Revise section 252.232–7003 to 

read as follows: 

252.232–7003 Electronic Submission of 

Payment Requests and Receiving Reports. 

As prescribed in 232.7004(a), use the 

following clause: 

Electronic Submission of Payment Requests 

and Receiving Reports (Date) 

(a) Definitions. As used in this clause— 

Contract financing payment and invoice 

payment have the meanings given in section 

32.001 of the Federal Acquisition Regulation. 

Electronic form means any automated 

system that transmits information 

electronically from the initiating system to 

affected systems. 

Payment request means any request for 

contract financing payment or invoice 

payment submitted by the Contractor under 

this contract or task or delivery order. 

Receiving report means the data prepared 

in the manner and to the extent required by 

Appendix F, Material Inspection and 

Receiving Report, of the Defense Federal 

Acquisition Regulation Supplement. 

(b) Except as provided in paragraph (d) of 

this clause, the Contractor shall submit 

payment requests and receiving reports in 

electronic form using Wide Area WorkFlow 

(WAWF). The Contractor shall prepare and 

furnish to the Government a receiving report 

at the time of each delivery of supplies or 

services under this contract or task or 

delivery order. 

(c) Submit payment requests and receiving 

reports to WAWF in one of the following 

electronic formats— 

(1) Electronic Data Interchange; 

(2) Secure File Transfer Protocol; or 

(3) Direct input through the WAWF 

website. 

(d) The Contractor may submit a payment 

request and receiving report using methods 

other than WAWF only when— 

(1) The Contractor has requested 

permission in writing to do so, and the 

Contracting Officer has provided instructions 

for a temporary alternative method of 

submission of payment requests and 

receiving reports in the contract 

administration data section of this contract or 

task or delivery order; 

(2) DoD makes payment for commercial 

transportation services provided under a 

Government rate tender or a contract for 

transportation services using 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); 

(3) DoD makes payment on a contract or 

task or delivery order for rendered health 

care services using the TRICARE Encounter 

Data System; or 

(4) The Governmentwide commercial 

purchase card is used as the method of 

payment, in which case submission of only 

the receiving report in WAWF is required. 

(e) Information regarding WAWF is 

available at https://wawf.eb.mil/. 

(f) 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. 

(End of clause) 

■ 9. Amend section 252.232–7006 by— 

■ a. Removing the clause date of ‘‘(MAY 

2013)’’ and adding ‘‘(DATE)’’ in its 

place; 

■ b. In paragraph (b), removing ‘‘system 

is’’ and ‘‘DFARS 252.232–7003’’ and 

adding ‘‘system provides’’ and ‘‘Defense 

Federal Acquisition Regulation System 

(DFARS) 252.232–7003’’, in their place, 

respectively; 

■ c. In paragraph (c)(1), removing 

‘‘https://www.acquisition.gov’’ and 

adding ‘‘https://www.sam.gov’’ in its 

place; 

■ d. Revising paragraph (f); and 

■ e. Revising paragraph (g)(2). 

The revisions read as follows: 

252.232–7006 Wide Area WorkFlow 

Payment Instructions. 

* * * * * 

(f) WAWF payment instructions. The 

Contractor shall use the following 

information when submitting payment 

requests and receiving reports in WAWF 

for this contract or task or delivery 

order: 

(1) Document type. The Contractor 

shall submit payment requests using the 

following document type(s): 

(i) For cost-type line items, including 

labor-hour or time-and-materials, 

submit a cost voucher. 

(ii) For fixed price line items— 

(A) That require shipment of a 

deliverable, submit the invoice and 

receiving report specified by the 

Contracting Officer; 

[Contracting Officer: Insert applicable 

invoice and receiving report document 

type(s) for fixed price line items that 

require shipment of a deliverable.] 

(B) For services that do not require 

shipment of a deliverable, submit either 

the Invoice 2in1, which meets the 

requirements for the invoice and 

receiving report, or the applicable 

invoice and receiving report, as 

specified by the Contracting Officer. 

[Contracting Officer: Insert either 

‘‘Invoice 2in1’’ or the applicable invoice 

and receiving report document type(s) 

for fixed price line items for services.] 

(iii) For customary progress payments 

based on costs incurred, submit a 

progress payment request. 

(iv) For performance based payments, 

submit a performance based payment 

request. 

(v) For commercial item financing, 

submit a commercial item financing 

request. 

(2) Fast Pay requests are only 

permitted when Federal Acquisition 

Regulation (FAR) 52.213–1 is included 

in the contract. 

[Note: The Contractor may use a WAWF 

‘‘combo’’ document type to create some 

combinations of invoice and receiving 

report in one step.] 

(3) Document routing. The Contractor 

shall use the information in the Routing 

Data Table to paragraph (f)(3) only to fill 

in applicable fields in WAWF when 

creating payment requests and receiving 

reports in the system. 


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ROUTING DATA TABLE TO PARAGRAPH (f)(3) * 

Field name in WAWF Data to be entered in WAWF 

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) 

[* Contracting Officer: Insert applicable 

DoDAAC information. If multiple ship 

to/acceptance locations apply, insert 

‘‘See Schedule’’ or ‘‘Not applicable.’’] 

[** Contracting Officer: If the contract 

provides for progress payments or 

performance-based payments, insert the 

DoDAAC for the contract administration 

office assigned the functions under FAR 

42.302(a)(13).] 

(4) Payment request. The Contractor 

shall ensure a payment request includes 

documentation appropriate to the type 

of payment request in accordance with 

the payment clause, contract financing 

clause, or Federal Acquisition 

Regulation 52.216–7, Allowable Cost 

and Payment, as applicable. 

(5) Receiving report. The Contractor 

shall ensure a receiving report meets the 

requirements of DFARS Appendix F. 

(g) * * * 

(2) Contact the WAWF helpdesk at 

866–618–5988, if assistance is needed. 

* * * * * 

252.246–7000 [Removed and Reserved] 

■ 10. Remove and reserve section 

252.246–7000. 

■ 11. Amend appendix F to chapter 2 as 

follows: 

■ a. In section F–102 by— 

■ i. Redesignating paragraph (c) as 

paragraph (b); and 

■ ii. Removing paragraph (b). 

■ b. In section F–301, revising 

paragraph (b)(18); 

■ c. Revising section F–305; 

■ d. Revising section F–306; and 

■ e. Amending section F–502, by adding 

to Table 1, a heading to the column on 

the right to read ‘‘Number of Copies’’. 

The revisions read as follows: 

F–301 Preparation Instructions 

* * * * * 

(b) * * * 

(18) UNIT PRICE. When using the WAWF 

RRR, the unit price is the price of the repair, 

overhaul, or maintenance service from the 

contract. 

(i) The contractor may, at its option, enter 

unit prices on the WAWF RR, except when 

the contract has Item Unique Identification 

(IUID) requirements and the receiving report 

is being processed in WAWF, the unit price 

must represent the acquisition cost that will 

be recorded in the IUID registry. Therefore, 

in such cases, the unit price is required. See 

DFARS 252.211–7003, Item Unique 

Identification and Valuation). 

(ii) The contractor shall enter unit prices 

for each item of property fabricated or 

acquired for the Government and delivered to 

a contractor as Government furnished 

property (GFP). Get the unit price from 

Section B of the contract. If the unit price is 

not available, use an estimate. The estimated 

price should be the contractor’s estimate of 

what the items cost the Government. When 

the price is estimated, enter ‘‘Estimated Unit 

Price’’ in the description field. When 

delivering GFP via WAWF to another 

contractor, WAWF will initiate a property 

transfer if the vendor who is initiating the 

WAWF RR is also registered as a vendor 

property shipper in WAWF and the vendor 

receiving the property is also a vendor 

property receiver in WAWF. 

(iii) For clothing and textile contracts 

containing a bailment clause, enter the cited 

Government furnished property unit value as 

‘‘GFP UNIT VALUE’’ in the description field. 

(iv) For all copies of DD Forms 250 for 

FMS shipments, enter actual prices, if 

available. If actual prices are not available, 

use estimated prices. When the price is 

estimated, enter an ‘‘E’’ after the price. 

* * * * * 

F–305 Invoice Instructions 

Contractors shall submit payment requests 

and receiving reports in accordance with 

paragraph (b) of the clause at DFARS 


sradovich on DSK3GMQ082PROD with PROPOSALS
30666 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Proposed Rules 

252.232–7003 unless one of the exceptions in 

paragraph (d) of that clause applies. 

F–306 Packing List Instructions 

(a) Contractors may use a WAWF 

processed RR or the WAWF RRR, as a 

packing list. WAWF provides an option to 

print the RR or RRR. Contractors can print a 

RR or RRR from a system other than WAWF 

if a signed copy is required. In such cases, 

the contractor shall print the WAWF RR or 

RRR only after a signature is applied by the 

Government inspector or authorized acceptor 

in WAWF. Copies printed from the 

contractor’s system shall be annotated with 

‘‘\\original signed in WAWF\\’’ in lieu of 

the inspector or acceptor’s signature. Ensure 

a copy is visible on the outside and one is 

placed inside the package. 

(b) If the contract requires Government 

source inspection and acceptance at origin, 

the contractor shall ensure that its packaging 

documentation includes a RR or RRR that 

documents inspection, acceptance, or both by 

the Government inspector or authorized 

acceptor. A paper DD Form 250 may be used 

in lieu of WAWF generated RRs or RRRs 

when one of the exceptions in paragraph (d) 

of the clause at DFARS 252.232–7003 

applies. 

* * * * * 

[FR Doc. 2018–14063 Filed 6–28–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

[Docket DARS–2018–0018] 

RIN 0750–AJ42 

Defense Federal Acquisition 

Regulation Supplement: Submission of 

Summary Subcontract Reports 

(DFARS Case 2017–D005) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

clarify the entity to which contractors 

submit Summary Subcontract Reports in 

the Electronic Subcontracting Reporting 

System (eSRS) and to clarify the entity 

that acknowledges receipt of, or rejects, 

the reports in eSRS. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

August 28, 2018, to be considered in the 

formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2017–D005, 

using any of the following methods: 

Æ Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for 

‘‘DFARS Case 2017–D005.’’ Select 

‘‘Comment Now’’ and follow the 

instructions provided to submit a 

comment. Please include ‘‘DFARS Case 

2017–D005’’ on any attached 

documents. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2017–D005 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Jennifer 

D. Johnson, OUSD(AT&L)DPAP/DARS, 

Room 3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately 2 to 3 days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, telephone 571– 

372–6100. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise the DFARS 

to implement a policy that streamlines 

the submission and review of Summary 

Subcontract Reports (SSRs) for DoD 

contractors and brings the DFARS into 

compliance with changes to the Federal 

Acquisition Regulation (FAR). Instead of 

submitting multiple SSRs to 

departments and agencies within DoD, 

contractors with individual 

subcontracting plans will submit a 

single, consolidated SSR in eSRS at the 

DoD level. The consolidated SSR will be 

acknowledged or rejected in eSRS at the 

DoD level. 

II. Discussion and Analysis 

The clause at DFARS 252.219–7003, 

Small Business Subcontracting Plan 

(DoD Contracts), and its Alternate I 

currently require contractors to submit 

SSRs to departments or agencies within 

DoD. DFARS 252.219–7003 and its 

Alternate I also inform contractors that 

the authority to acknowledge receipt of, 

or reject, SSRs resides with the SSR 

Coordinator at departments or agencies 

within DoD. This rule proposes to 

amend the DFARS clause to require 

contractors with individual 

subcontracting plans to submit a 

consolidated SSR at the DoD level, and 

to inform contractors that the authority 

to acknowledge receipt of or reject SSRs 

under individual subcontracting plans 

resides with the SSR Coordinator at the 

DoD level. These amendments will 

bring DFARS clause 252.219–7003 into 

compliance with the requirement for a 

consolidated SSR in FAR clause 52.219– 

9, Small Business Subcontracting Plan. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT) and for Commercial 

Items, Including Commercially 

Available Off-the-Shelf (COTS) Items 

This rule proposes to amend the 

clause at DFARS 252.219–7003, Small 

Business Subcontracting Plan (DoD 

Contracts), and its Alternate I. The 

objective of the rule is to provide 

clarification on the submission and 

review of SSRs in eSRS. 

DoD does not apply the clause and its 

Alternate I to solicitations and contracts 

with a value at or below the SAT, 

because subcontracting plans are not 

required at that dollar value. 

DoD currently applies the clause and 

its Alternate I to solicitations and 

contracts for the acquisition of 

commercial items, including COTS 

items, as defined at FAR 2.101. Not 

applying this guidance to contracts for 

the acquisition of commercial items, 

including COTS items, would exclude 

contracts intended to be included in the 

streamlined SSRs and undermine the 

overarching purpose of the rule. 

Consequently, DoD plans to apply the 

rule to contracts for the acquisition of 

commercial items, including COTS 

items. 

IV. Expected Cost Savings 

This rule amends the DFARS to 

implement a policy that streamlines the 

submission and review of SSRs for DoD 

contractors. Instead of the current 

practice of submitting multiple SSRs to 

various departments or agencies within 

DoD, contractors with individual 

subcontracting plans will submit one 

consolidated SSR at the DoD level in the 

eSRS. The consolidated SSR will be 

acknowledged or rejected in eSRS at the 

DoD level. 

This rule impacts only large 

businesses that have individual 

subcontracting plans and at least one 

contract with DoD. Although the clause 

at DFARS 252.219–7003, Small 

Business Subcontracting Plan (DoD 

Contracts), and its Alternate I currently 

require large business contractors to 

submit SSRs to the department or 

agency within DoD that administers the 

majority of the contractor’s individual 

subcontracting plans, these contractors 

frequently must submit SSRs to each 

department or agency within DoD with 

which they have contracts. This results 

in extra work for the contractors and 


sradovich on DSK3GMQ082PROD with PROPOSALS