49302 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 

Air pollution control, Intergovernmental 

relations, Operating permits, Reporting 

and recordkeeping requirements. 

Dated: September 25, 2018. 

Edward H. Chu, 

Acting Regional Administrator, Region 7. 

For the reasons stated in the 

preamble, EPA amends 40 CFR parts 52 

and 70 as set forth below: 

Part 52—APPROVAL AND 

PROMULGATION OF 

IMPLEMENTATION PLANS 

■ 1. The authority citation for part 52 

continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq. 

Subpart Q—Iowa 

■ 2. Amend § 52.820(c) by revising the 

entry ‘‘567–22.1’’ to read as follows: 

§ 52.820 Identification of plan. 

* * * * * 

(c) * * * 

EPA-APPROVED IOWA REGULATIONS

Iowa citation Title 

State 

effective 

date 

EPA approval date Explanation 

Iowa Department of Natural Resources Environmental Protection Commission [567] 

*******

Chapter 22—Controlling Pollution 

567–22.1 ........... Permits Required for New or Existing Stationary Sources.12/13/17 10/1/2018, [Insert Federal Register citation].Electronic submittal referred to in 

22.1(3) is not SIP approved. 

* * * * * * * 

* * * * * 

PART 70—STATE OPERATING PERMIT 

PROGRAMS 

■ 3. The authority citation for part 70 

continues to read as follows: 

Authority: 42 U.S.C. 7401, et seq. 

■ 4. Amend appendix A to part 70 by 

adding paragraph (s) under the heading 

‘‘Iowa’’ to read as follows: 

Appendix A to Part 70—Approval 

Status of State and Local Operating 

Permits Programs 

* * * * * 

Iowa 

* * * * * 

(s) The Iowa Department of Natural 

Resources submitted for program approval 

revisions to rule 567–22.105. Electronic 

submittal referred to in 22.105 is not 

approved in the operating permits program. 

The state effective date is December 13, 2017. 

This revision is effective November 30, 2018. 

* * * * * 

[FR Doc. 2018–21285 Filed 9–28–18; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

44 CFR Chapter I 

Technical, Organizational and 

Conforming Amendments 

CFR Correction 

In Title 44 of the Code of Federal 

Regulations, revised as of October 1, 

2017, make the following corrections: 

■ 1. On page 45, in § 7.14, in paragraph 

(e), remove the word ‘‘Director’’ and add 

the word ‘‘Administrator’’ in its place. 

■ 2. On page 135, in § 59.24, in 

paragraph (a), and on page 137, in 

paragraph (f), remove the term ‘‘the 

Administrator’’ and add the term 

‘‘Federal Insurance Administrator’’ in 

its place. 

■ 3. On page 285, in § 151.11, in the 

introductory text, remove the word 

‘‘Director’’ and add the word 

‘‘Administrator’’ in its place. 

■ 4. On page 286, in § 151.12, in the last 

sentence of paragraph (b)(2), remove the 

word ‘‘Director’’ and add the word 

‘‘Administrator’’ in its place. 

■ 5. On page 319, in § 206.2, in 

paragraph (a)(11), remove the word 

‘‘Director’’ and add the word 

‘‘Administrator’’ in its place. 

■ 6. On page 371, in § 206.164, in 

paragraph (b), remove the word 

‘‘Director’’ and add the word 

‘‘Administrator’’ in its place. 

■ 7. On page 505, in § 332.2, in 

paragraph (e)(2), remove the word 

‘‘Director’’ and add the word 

‘‘Administrator’’ in its place. 

■ 8. On page 516, in § 350.9, in the last 

sentence of paragraph (c)(3), remove the 

term ‘‘Associate Director’’ and add the 

term ‘‘Deputy Administrator for the 

National Preparedness Directorate’’ in 

its place. 

■ 9. On page 518, in § 350.12 in the 

introductory text of paragraph (b), 

remove the term ‘‘Regional Director’s’’ 

and add the term ‘‘Regional 

Administrator’s’’ in its place. 

[FR Doc. 2018–21367 Filed 9–28–18; 8:45 am] 

BILLING CODE 1301–00–D 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Parts 801, 811, 832, 852, and 

870 

RIN 2900–AP81 

VA Acquisition Regulation: Describing 

Agency Needs; Contract Financing 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending and updating 

its VA Acquisition Regulation (VAAR) 

in phased increments to revise or 

remove any policy superseded by 

changes in the Federal Acquisition 

Regulation (FAR), to remove procedural 

guidance internal to VA into the VA 


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Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49303 

Acquisition Manual (VAAM), and to 

incorporate any new agency specific 

regulations or policies. These changes 

seek to streamline and align the VAAR 

with the FAR and remove outdated and 

duplicative requirements and reduce 

burden on contractors. The VAAM 

incorporates portions of the removed 

VAAR as well as other internal agency 

acquisition policy. VA will rewrite 

certain parts of the VAAR and VAAM, 

and as VAAR parts are rewritten, we 

will publish them in the Federal 

Register. In particular, this rulemaking 

revises VAAR concerning Describing 

Agency Needs and Contract Financing, 

as well as affected parts covering the 

Department of Veterans Affairs 

Acquisition Regulation System, 

Solicitation Provisions and Contract 

Clauses, and Special Procurement 

Controls. 

DATES: This rule is effective on October 

31, 2018. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Rafael N. Taylor, Senior Procurement 

Analyst, Procurement Policy and 

Warrant Management Services, 003A2A, 

425 I Street NW, Washington, DC 20001, 

(202) 382–2787. (This is not a toll-free 

number.) 

SUPPLEMENTARY INFORMATION: On March 

26, 2018, VA published a proposed rule 

in the Federal Register (83 FR 12922) 

which announced VA’s intent to amend 

regulations for VAAR Case RIN 2900– 

AP81 (parts 811 and 832). In particular, 

this final rule revises part 811 to remove 

coverage of what brand name or equal 

purchase descriptions must include as 

the FAR provides sufficient coverage; 

removes coverage pertaining to brand 

names based on current FAR coverage; 

removes purchase description clauses; 

removes VAAR coverage of bid samples; 

removes the section providing coverage 

on procedures for negotiated 

procurements; removes VAAR coverage 

on ‘‘items peculiar to one 

manufacturer.’’ It revises part 832 to add 

policy to implement an OMB 

memorandum entitled ‘‘Accelerating 

Payments to Small Businesses for Goods 

and Services,’’ to encourage making 

payments to small business contractors 

within 15 days of receipt of invoice; 

delegates authority within VA to 

approve contract terms concerning 

advance payments; and removes 

subparts 832.5, Progress Payments 

Based on Costs and 832.8, Assignment 

of Claims, as both contain internal 

procedural guidance not having a 

significant effect beyond the internal 

operating procedures of VA. 

VA provided a 60-day comment 

period for the public to respond to the 

proposed rule. The comment period for 

the proposed rule ended on May 25, 

2018 and VA received no comments. 

This document adopts as a final rule, 

the proposed rule published in the 

Federal Register on March 26, 2018, 

with minor stylistic and grammatical 

edits. This final rule has Federal 

Register administrative format changes 

in the amendatory text which make no 

substantive text changes at the affected 

sections. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

Governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This final rule will have no 

such effect on State, local, and tribal 

Governments or on the private sector. 

Paperwork Reduction Act 

This final rule imposes the following 

amended information collection 

requirements to two of the six existing 

information collection approval 

numbers associated with this rule. 

Although this action contains 

provisions constituting collections of 

information at 48 CFR 852.236–82 and 

852.236–83, under the provisions of the 

Paperwork Reduction Act (44 U.S.C. 

3501–3521), no new proposed 

collections of information are associated 

with these clauses. The information 

collection requirements for 48 CFR 

852.236–82 and 852.236–83 are 

currently approved by the Office of 

Management and Budget (OMB) and 

have been assigned OMB control 

number 2900–0422. However, this 

information collection was submitted to 

OMB to revise the title and to 

redesignate and renumber the two 

clauses currently numbered as sections 

852.236–82, Payments Under FixedPrice Construction Contracts (Without 

NAS), and 852.236–83, Payments Under 

Fixed-Price Construction Contracts 

(Including NAS). Accordingly, they will 

reflect the new designation and revised 

titles as set forth in the amendatory 

language of the rule to read: 852.232–70, 

Payments Under Fixed-Price 

Construction Contracts (Without NAS– 

CPM), and 852.232–71, Payments Under 

Fixed-Price Construction Contracts 

(Including NAS–CPM), respectively, 

under the associated OMB control 

number 2900–0422. The references to 

the old numbers—852.236–82 and 

852.236–83, are accordingly removed. 

There is no change in the information 

collection burden that is associated with 

this action. As required by the 

Paperwork Reduction Act of 1995 (at 44 

U.S.C. 3507(d)), VA has submitted these 

information collection amendments to 

OMB for its review. Notice of OMB 

approval for this information collection 

was published on Reginfo.gov on May 

15, 2018. 

This final rule imposes the following 

amended information collection 

requirements to one of the six existing 

information collection approval 

numbers associated with this rule. 

Although this action contains 

provisions constituting collections of 

information at 48 CFR 852.211–70, 

Service Data Manuals, under the 

provisions of the Paperwork Reduction 

Act (44 U.S.C. 3501–3521), no new 

proposed information collection is 

associated with this clause. The 

information collection requirement for 

48 CFR 852.211–70 is currently 

approved by OMB and has been 

assigned OMB control number 2900– 

0587. However, this information 

collection has been submitted to OMB 

to revise the title from ‘‘Service Data 

Manuals,’’ to read, ‘‘Equipment 

Operation and Maintenance Manuals.’’ 

The information collection request 

reflects the revised title for this clause 

to read: 852.211–70, Equipment 

Operation and Maintenance Manuals, 

under the associated OMB control 

number 2900–0587. By revising the 

clause and removing the requirement to 

develop Government-specified service 

manuals, VA has eliminated an 

unnecessary burden on the public by 

making use of commercial operation 

and maintenance manuals consistent 

with the general public and established 

commercial practices, thereby reducing 

by half the estimated annual hourly 

burden which is now estimated at 311 

hours, a reduction of 310 annual hours. 

Notice of OMB approval for this 

information collection will be published 

in a future Federal Register document. 

This final rule removes two of the six 

existing information collection 

requirements associated with this action 

at 48 CFR 852.211–71, Special Notice, 

and 48 CFR 852.211–73, Brand Name or 

Equal. Under the provisions of the 

Paperwork Reduction Act (44 U.S.C. 

3501–3521), it discontinues the 

associated corresponding approved 

OMB control numbers, 2900–0588 and 

2900–0585, respectively. For 48 CFR 

852.211–71, Special Notice, and its 

corresponding OMB control number 

2900–0588, this results in a removal of 

875 estimated annual burden hours. For 

48 CFR 852.211–73, Brand Name or 

Equal, and its corresponding OMB 

control number 2900–0585, this results 

in a removal of 1,125 estimated annual 


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49304 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 

burden hours. Notice of OMB approval 

for the information collection requests 

will be published in a future Federal 

Register document. 

This final rule also contains two other 

provisions constituting a collection of 

information at 48 CFR 852.211–72, 

Technical Industry Standards, and 48 

CFR 832.202–4, Security for 

Government financing, which remain 

unchanged. Under the provisions of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3521), no new or proposed 

revised collection of information is 

associated with these provisions as a 

part of this rule. The information 

collection requests for 48 CFR 852.211– 

72 and 48 CFR 832.202–4 are currently 

approved by OMB and have been 

assigned OMB control numbers 2900– 

0586 and 2900–0688, respectively. The 

burden of these information collections 

remains unchanged. In accordance with 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521), OMB has 

approved the reporting or recordkeeping 

provisions that are included in the 

clause and the text under section 

832.202–4 cited above and has given the 

VA the following approval numbers: 

OMB 2900–0586 and OMB 2900–0688, 

respectively. 

Regulatory Flexibility Act 

This final rule will not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. This 

final rule will generally be small 

business neutral. The rule text does not 

change VA’s policy regarding small 

businesses. Therefore, the rule does not 

have a significant economic impact on 

substantial number of small entities. 

There are no increased and/or decreased 

costs to small entities. The overall 

impact of this final rule will be of 

benefit to small businesses owned by 

Veterans or service-disabled Veterans as 

the VAAR is being updated to remove 

extraneous procedural information that 

applies only to VA’s internal operating 

procedures. VA is merely adding 

existing and current regulatory 

requirements to the VAAR and 

removing any guidance that is 

applicable only to VA’s internal 

operation processes or procedures. VA 

estimates no cost impact to individual 

business resulting from these rule 

updates. This rulemaking does not 

change VA’s policy regarding small 

businesses, does not have an economic 

impact to individual businesses, and 

there are no increased or decreased 

costs to small business entities. On this 

basis, this final rule will not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. 

Therefore, under 5 U.S.C. 605(b), this 

final rule is exempt from the initial and 

final regulatory flexibility analysis 

requirements of sections 603 and 604. 

Executive Orders 12866, 13563 and 

13771 

Executive Orders (E.O.) 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. E.O. 12866, Regulatory 

Planning and Review defines 

‘‘significant regulatory action’’ to mean 

any regulatory action that is likely to 

result in a rule that may: ‘‘(1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) Create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

order.’’ 

VA has examined the economic, 

interagency, budgetary, legal, and policy 

implications of this regulatory action, 

and it has been determined not to be a 

significant regulatory action under E.O. 

12866 because it does not raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

Order. 

VA’s impact analysis can be found as 

a supporting document at http://

www.regulations.gov, usually within 48 

hours after the rulemaking document is 

published. Additionally, a copy of the 

rulemaking and its impact analysis are 

available on VA’s website at http://

www.va.gov/orpm by following the link 

for VA Regulations Published from FY 

2004 Through Fiscal Year to Date. This 

final rule is considered an E.O. 13771 

deregulatory action. Details on the 

estimated cost savings of this final rule 

can be found in the rule’s economic 

analysis. 

List of Subjects 

48 CFR Part 801 

Administrative practice and 

procedure, Government procurement, 

Reporting and recordkeeping 

requirements. 

48 CFR Parts 811 and 832 

Government procurement. 

48 CFR Part 852 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 870 

Asbestos, Frozen foods, Government 

procurement, Telecommunications. 

Signing Authority 

The Secretary of Veterans Affairs 

approved this document and authorized 

the undersigned to sign and submit the 

document to the Office of the Federal 

Register for publication electronically as 

an official document of the Department 

of Veterans Affairs. Robert L. Wilkie, 

Secretary, Department of Veterans 

Affairs, approved this document on 

August 24, 2018, for publication. 

Dated: August 28, 2018. 

Consuela Benjamin, 

Regulations Development Coordinator, Office 

of Regulation Policy & Management, Office 

of the Secretary, Department of Veterans 

Affairs. 

For the reasons set out in the 

preamble, VA amends 48 CFR parts 801, 

811, 832, 852, and 870 as follows: 

PART 801—DEPARTMENT OF 

VETERANS AFFAIRS ACQUISITION 

REGULATION SYSTEM 

■ 1. The authority citation for part 801 

is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1121; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 

CFR 1.301–1.304. 

■ 2. In section 801.106, table columns 

titled ‘‘48 CFR part or section where 

identified and described’’ and ‘‘Current 

OMB control number’’ are amended 

by— 

■ a. Removing the reference to section 

832.006–4 and OMB Control Number 

2900–0668. 

■ b. Removing the reference to section 

852.211–71 and OMB Control Number 

2900–0588. 

■ c. Removing the reference to section 

852.211–73 and OMB Control Number 

2900–0585. 

■ d. Removing ‘‘852.236–82 through.’’ 

■ e. Adding an entry for sections 

852.232–70 and 852.232–71 in 

numerical order. 


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The addition reads as follows: 

801.106 OMB approval under the 

Paperwork Reduction Act. 

* * * * * 

48 CFR part or section 

where identified and 

described 

Current OMB 

control No. 

* * * * * 

852.232–70 and 852.232–71 2900–0422 

* * * * * 

■ 3. Under the authority of 48 CFR 1.301 

through 1.304, the heading of 

subchapter B is revised to read as 

follows: 

SUBCHAPTER B—ACQUISITION PLANNING 

PART 811—DESCRIBING AGENCY 

NEEDS 

■ 4. The authority citation for part 811 

is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1303; 41 U.S.C. 1702; and 48 CFR 1.301– 

1.304. 

811.001 [Removed] 

■ 5. Section 811.001 is removed. 

■ 6. Revise subpart 811.1 to read as 

follows: 

Subpart 811.1—Selecting and 

Developing Requirements Documents 

811.107–70 Contract clause. 

The contracting officer shall insert the 

clause at 852.211–70, Equipment 

Operation and Maintenance Manuals, in 

solicitations and contracts for technical 

medical equipment, and other technical 

and mechanical equipment and devices 

where the requiring activity determines 

manuals are a necessary requirement for 

operation and maintenance of the 

equipment. 

■ 7. Revise subpart 811.2 to read as 

follows: 

Subpart 811.2—Using and Maintaining 

Requirements Documents 

811.204–70 Contract clause. 

The contracting officer shall insert the 

clause at 852.211–72, Technical 

Industry Standards, in solicitations and 

contracts requiring conformance to 

technical industry standards, federal 

specifications, standards and 

commercial item descriptions unless 

comparable coverage is included in the 

item specification. 

Subpart 811.4—[Removed and 

Reserved] 

■ 8. Subpart 811.4 is removed and 

reserved. 

Subpart 811.5—[Removed and 

Reserved] 

■ 9. Subpart 811.5 is removed and 

reserved. 

Subpart 811.6—[Removed and 

Reserved] 

■ 10. Subpart 811.6 is removed and 

reserved. 

PART 832—CONTRACT FINANCING 

■ 11. The authority citation for part 832 

is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1303; 41 U.S.C. 1702; and 48 CFR 1.301– 

1.304. 

■ 12. Section 832.001 is added to read 

as follows: 

832.001 Definitions. 

As used in this part: 

(a) Designated agency office means 

the office designated by the purchase 

order, agreement, or contract to first 

receive and review invoices. This office 

can be contractually designated as the 

receiving entity. This office may be 

different from the office issuing the 

payment. 

(b) Electronic form means an 

automated system transmitting 

information electronically according to 

the accepted electronic data 

transmission methods identified in 

832.7002–1. Facsimile, email, and 

scanned documents are not acceptable 

electronic forms for submission of 

payment requests. 

(c) Payment request means any 

request for contract financing payment 

or invoice payment submitted by a 

contractor under a contract. 

■ 13. Revise section 832.006–1 to read 

as follows: 

832.006–1 General. 

(b) The Senior Procurement Executive 

(SPE) is authorized to make 

determinations that there is substantial 

evidence that contractors’ requests for 

advance, partial, or progress payments 

are based on fraud and may direct that 

further payments to the contractors be 

reduced or suspended, as provided in 

FAR 32.006. 

832.006–2 and 832.006–3 [Removed] 

■ 14. Remove sections 832.006–2 and 

832.006–3. 

■ 15. Section 832.006–4 is revised to 

read as follows: 

832.006–4 Procedures. 

(b) The Remedy Coordination Official 

(RCO) for VA is the Deputy Senior 

Procurement Executive (DSPE) who 

shall carry out the responsibilities of the 

Secretary or designee in FAR 32.006– 

4(b). 

(e) The RCO shall carry out the 

responsibilities of the agency head in 

FAR 32.006–4(e) to notify the contractor 

of the reasons for the recommended 

action and of its right to submit 

information within a reasonable period 

of time in response to the proposed 

action under FAR 32.006. 

(1) The notice of proposed action will 

be sent to the last known address of the 

contractor, the contractor’s counsel, or 

agent for service of process, by certified 

mail, return receipt requested, or any 

other method that provides signed 

evidence of receipt. In the case of a 

business, the notice of proposed action 

may be sent to any partner, principal, 

officer, director, owner or co-owner, or 

joint venture. The contractor will be 

afforded an opportunity to appear before 

the RCO to present information or 

argument in person or through a 

representative and may supplement the 

oral presentation with written 

information and argument. 

(2) The contractor may supplement 

the oral presentation with written 

information and argument. The 

proceedings will be conducted in an 

informal manner and without the 

requirement for a transcript. If the RCO 

does not receive a reply from the 

contractor within 30 calendar days, the 

RCO will base his or her 

recommendations on the information 

available. Any recommendation of the 

RCO under FAR 31.006–4(a) and 

paragraph (b) of this section, must 

address the results of this notification 

and the information, if any, provided by 

the contractor. After reviewing all the 

information, the RCO shall make a 

recommendation to the SPE whether or 

not substantial evidence of fraud exists. 

(g) In addition to following the 

procedures in FAR 32.006–4, the SPE 

shall provide a copy of each final 

determination and the supporting 

documentation to the contractor, the 

RCO, the contracting officer, and the 

Office of the Inspector General (OIG). 

The contracting officer will place a copy 

of the determination and the supporting 

documentation in the contract file. 

Subpart 832.1—Non-Commercial Item 

Purchase Financing 

■ 16. Section 832.111 is revised to read 

as follows: 


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832.111 Contract clauses for noncommercial purchases. 

■ 17. Section 832.111–70 is added to 

read as follows: 

832.111–70 VA contract clauses for noncommercial purchases. 

(a)(1) Insert the clause at 852.232–70, 

Payments Under Fixed-Price 

Construction Contracts (Without NAS– 

CPM) in solicitations and contracts that 

contain the FAR clause at 52.232–5, 

Payments Under Fixed-Price 

Construction Contracts, and if the 

solicitation or contract does not require 

use of the ‘‘Network Analysis System— 

Critical Path Method (NAS–CPM).’’ 

(2) If the solicitation or contract 

includes guarantee period services, the 

contracting officer shall use the clause 

with its Alternate I. 

(b)(1) Insert the clause at 852.232–71, 

Payments Under Fixed-Price 

Construction Contracts (Including NAS– 

CPM), in solicitations and contracts that 

contain the FAR clause at 52.232–5, 

Payments Under Fixed-Price 

Construction Contracts, and if the 

solicitation or contract requires use of 

the ‘‘Network Analysis System—Critical 

Path Method (NAS–CPM).’’ 

(2) If the solicitation or contract 

includes guarantee period services, the 

contracting officer shall use the clause 

with its Alternate I. 

Subpart 832.2—Commercial Item 

Purchase Financing 

832.201 [Removed] 

■ 18. Section 832.201 is removed. 

■ 19. Section 832.202–1 is revised to 

read as follows: 

832.202–1 Policy. 

(d) HCAs shall report, no later than 

December 31st of each calendar year, to 

the Senior Procurement Executive (SPE) 

and the DSPE, on the number of 

contracts for commercial items with 

unusual contract financing or with 

commercial interim or advance 

payments approved for the previous 

fiscal year. The report shall include the 

contract number and amount, the 

amount of the unusual contract 

financing or with commercial interim or 

advance payments approved, and the 

kind and amount of security obtained 

for the advance. 

■ 20. Section 832.202–4 is revised to 

read as follows: 

832.202–4 Security for Government 

financing. 

(a)(2) An offeror’s financial condition 

may be considered adequate security to 

protect the Government’s interest when 

the Government provides contract 

financing. In assessing the offeror’s 

financial condition, the contracting 

officer may obtain, to the extent 

required, the following information— 

(i) A current year interim balance 

sheet and income statement and balance 

sheets and income statements for the 

two preceding fiscal years. The 

statements should be prepared in 

accordance with generally accepted 

accounting principles and must be 

audited and certified by an independent 

public accountant or an appropriate 

officer of the firm; 

(ii) A cash flow forecast for the 

remainder of the contract term showing 

the planned origin and use of cash 

within the firm or branch performing 

the contract; 

(iii) Information on financing 

arrangements disclosing the availability 

of cash to finance contract performance, 

the contractor’s exposure to financial 

risk, and credit arrangements; 

(iv) A statement of the status of all 

State, local, and Federal tax accounts, 

including any special mandatory 

contributions; 

(v) A description and explanation of 

the financial effects of any leases, 

deferred purchase arrangements, patent 

or royalty arrangements, insurance, 

planned capital expenditures, pending 

claims, contingent liabilities, and other 

financial aspects of the business; and 

(vi) Any other financial information 

deemed necessary. 

Subpart 832.4—Advance Payments for 

Non-Commercial Items 

■ 21. Section 832.402 is revised to read 

as follows: 

832.402 General. 

(c)(1)(iii) The authority to make the 

determination required by FAR 

32.402(c)(1)(iii) and to approve contract 

terms is delegated to the head of the 

contracting activity (HCA). The request 

for approval shall include the 

information required by FAR 32.409–1 

and shall address the standards for 

advance payment in FAR 32.402(c)(2). 

HCAs shall report, no later than 

December 31st of each calendar year, to 

the Senior Procurement Executive (SPE) 

and the DSPE, on number of contracts 

for non-commercial items with advance 

payments approved in the previous 

fiscal year. The report shall include the 

contract number and amount, the 

amount of the advance payment, and 

the kind and amount of security 

obtained for the advance. 

■ 22. Section 832.404 is revised to read 

as follows: 

832.404 Exclusions. 

(b)(1) As permitted by 31 U.S.C. 

3324(d)(2), VA allows advance payment 

for subscriptions or other charges for 

newspapers, magazines, periodicals, 

and other publications for official use, 

notwithstanding the provisions of 31 

U.S.C. 3324(a). The term ‘‘other 

publications’’ includes any publication 

printed, microfilmed, photocopied or 

magnetically or otherwise recorded for 

auditory or visual use. 

(2) As permitted by 31 U.S.C. 1535, 

VA allows advance payment for services 

and supplies obtained from another 

Government agency. 

(3) As permitted by 5 U.S.C. 4109, VA 

allows advance payment for all or any 

part of the necessary expenses for 

training Government employees, 

including obtaining professional 

credentials under 5 U.S.C. 5757, in 

Government or non-Government 

facilities, including the purchase or 

rental of books, materials, and supplies 

or services directly related to the 

training of a Government employee. 

Subpart 832.5 [Removed and 

Reserved] 

■ 23. Subpart 832.5 is removed and 

reserved. 

Subpart 832.8 [Removed and 

Reserved] 

■ 24. Subpart 832.8 is removed and 

reserved. 

Subpart 832.9—Prompt Payment 

832.904 [Redesignated as 832.904–70 and 

Amended] 

■ 25. Redesignate section 832.904 as 

832.904–70 and revise newly 

redesignated section 832.904–70 to read 

as follows: 

832.904–70 Determining payment due 

dates for small businesses. 

Pursuant to Office of Management and 

Budget Memorandum M–11–32, 

Accelerating Payments to Small 

Businesses for Goods and Services, 

contracting officers shall, to the full 

extent permitted by law, make payments 

to small business contractors as soon as 

practicable, with the goal of making 

payments within 15 days of receipt of a 

proper invoice and confirmation that 

the goods and services have been 

received and accepted by the Federal 

Government. 

Subpart 832.11 [Removed and 

Reserved] 

■ 26. Subpart 832.11 is removed and 

reserved. 


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■ 27. Revise subpart 832.70 to read as 

follows: 

Subpart 832.70—Electronic Invoicing 

Requirements 

Sec. 

832.7000 General. 

832.7001 Electronic payment requests. 

832.7001–1 Data transmission. 

832.7001–2 Contract clause. 

832.7000 General. 

This subpart prescribes policy 

requirements for submitting and 

processing payment requests in 

electronic form. 

832.7001 Electronic payment requests. 

(a) The contractor shall submit 

payment requests in electronic form 

unless directed by the contracting 

officer to submit payment requests by 

mail. Purchases paid with a 

Government-wide commercial purchase 

card are considered to be an electronic 

transaction for purposes of this rule, and 

therefore no additional electronic 

invoice submission is required. 

(b) The contracting officer may direct 

the contractor to submit payment 

requests by mail, through the United 

States Postal Service, to the designated 

agency office for— 

(1) Awards made to foreign vendors 

for work performed outside the United 

States; 

(2) Classified contracts or purchases 

when electronic submission and 

processing of payment requests could 

compromise the safeguarding of 

classified or privacy information; 

(3) Contracts awarded by contracting 

officers in the conduct of emergency 

operations, such as responses to 

national emergencies; 

(4) Solicitations or contracts in which 

the designated agency office is a VA 

entity other than the VA Financial 

Services Center in Austin, Texas; or 

(5) Solicitations or contracts in which 

the VA designated agency office does 

not have electronic invoicing capability 

as described above. 

832.7001–1 Data transmission. 

The contractor shall submit electronic 

payment requests through— 

(a) VA’s Electronic Invoice 

Presentment and Payment System at the 

current website address provided in the 

contract; or 

(b) A system that conforms to the X12 

electronic data interchange (EDI) 

formats established by the Accredited 

Standards Center (ASC) chartered by the 

American National Standards Institute 

(ANSI). 

832.7001–2 Contract clause. 

The contracting officer shall insert the 

clause at 852.232–72, Electronic 

Submission of Payment Requests, in 

solicitations and contracts exceeding the 

micro-purchase threshold, except those 

for which the contracting officer has 

directed otherwise under 832.7001, and 

those paid with a Governmentwide 

commercial purchase card. 

PART 852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 28. The authority citation for part 852 

is revised to read as follows: 

Authority: 38 U.S.C. 8127–8128, and 

8151–8153; 40 U.S.C. 121(c); 41 U.S.C. 

1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; 

and 48 CFR 1.301–1.304. 

Subpart 852.2—Text of Provisions and 

Clauses 

■ 29. Section 852.211–70 is revised to 

read as follows: 

852.211–70 Equipment Operation and 

Maintenance Manuals. 

As prescribed in 811.107–70, insert 

the following clause: 

Equipment Operation and Maintenance 

Manuals (Nov 2018) 

The Contractor shall follow standard 

commercial practices to furnish 

manual(s), handbook(s) or brochure(s) 

containing operation, installation, and 

maintenance instructions, including 

pictures or illustrations, schematics, and 

complete repair/test guides, as 

necessary, for technical medical 

equipment and devices, and/or other 

technical and mechanical equipment 

provided per CLIN(s) #lll 

[Contracting Officer insert CLIN 

information]. The manuals, handbooks 

or brochures shall be provided in hard 

copy, soft copy or with electronic access 

instructions, consistent with standard 

industry practices for the equipment or 

device. Where applicable, the manuals, 

handbooks or brochures will include 

electrical data and connection diagrams 

for all utilities. The documentation shall 

also contain a complete list of all 

replaceable parts showing part number, 

name, and quantity required. 

(End of clause) 

852.211–71 [Removed and Reserved] 

■ 30. Section 852.211–71 is removed 

and reserved. 

■ 31. Section 852.211–72 is revised to 

read as follows: 

852.211–72 Technical Industry Standards. 

As prescribed in 811.204–70, insert 

the following clause: 

Technical Industry Standards (Nov 

2018) 

(a) The Contractor shall conform to 

the standards established by:lll 

[Contracting Officer: Insert name of 

organization establishing the 

requirement, reference title, cite and 

date, e.g., United States Department of 

Agriculture (USDA), Institutional Meat 

Purchase Specifications (IMPS), Series 

100, Beef products, Jan 2010] as to 

[Contracting Officer: Insert item and 

CLIN, e.g., CLIN 0005 Ground Beef]. 

(b) The Contractor shall submit proof 

of conformance to the standard. This 

proof may be a label or seal affixed to 

the equipment or supplies, warranting 

that the item(s) have been tested in 

accordance with the standards and meet 

the contract requirement. Proof may also 

be furnished by the organization listed 

above certifying that the item(s) 

furnished have been tested in 

accordance with and conform to the 

specified standards. 

(c) Offerors may obtain the standards 

cited in this provision by submitting a 

request, including the solicitation 

number, title and number of the 

publication to: [Organization]lllll 

[Mail or email address] lllll. 

(d) The offeror shall contact the 

Contracting Officer if response is not 

received within two weeks of the 

request. 

(End of clause) 

852.211–73, 852.211–74, and 852.211–75 

[Removed and Reserved] 

■ 32. Remove and reserve sections 

852.211–73 through 852.211–75. 

■ 33. Add section 852.232–70 to read as 

follows: 

852.232–70 Payments Under Fixed-Price 

Construction Contracts (Without NAS– 

CPM). 

As prescribed in 832.111–70, insert 

the following clause in contracts that do 

not contain a section entitled ‘‘Network 

Analysis System—Critical Path’’ 

Payments Under Fixed-Price 

Construction Contracts (Without NAS– 

CPM) (Nov 2018) 

The clause FAR 52.232–5, Payments 

Under Fixed-Price Construction 

Contracts, is implemented as follows: 

(a) Retainage. (1) The Contracting 

Officer may retain funds— 

(i) Where performance under the 

contract has been determined to be 

deficient or the Contractor has 

performed in an unsatisfactory manner 

in the past; or 

(ii) As the contract nears completion, 

to ensure that deficiencies will be 

corrected and that completion is timely. 


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(2) Examples of deficient performance 

justifying a retention of funds include, 

but are not restricted to, the following— 

(i) Unsatisfactory progress as 

determined by the Contracting Officer; 

(ii) Failure to meet schedule in 

Schedule of Work Progress; 

(iii) Failure to present submittals in a 

timely manner; or 

(iv) Failure to comply in good faith 

with approved subcontracting plans, 

certifications, or contract requirements. 

(3) Any level of retention shall not 

exceed 10 percent either where there is 

determined to be unsatisfactory 

performance, or when the retainage is to 

ensure satisfactory completion. Retained 

amounts shall be paid promptly upon 

completion of all contract requirements, 

but nothing contained in this paragraph 

(a)(3) shall be construed as limiting the 

Contracting Officer’s right to withhold 

funds under other provisions of the 

contract or in accordance with the 

general law and regulations regarding 

the administration of Government 

contracts. 

(b) The Contractor shall submit a 

schedule of cost to the Contracting 

Officer for approval within 30 calendar 

days after date of receipt of notice to 

proceed. Such schedule will be signed 

and submitted in triplicate. The 

approved cost schedule will be one of 

the bases for determining progress 

payments to the Contractor for work 

completed. This schedule shall show 

cost by the work activity/event for each 

building or unit of the contract, as 

instructed by the resident engineer. 

(1) The work activities/events shall be 

subdivided into as many sub-activities/ 

events as are necessary to cover all 

component parts of the contract work. 

(2) Costs as shown on this schedule 

must be true costs and the resident 

engineer may require the Contractor to 

submit the original estimate sheets or 

other information to substantiate the 

detailed makeup of the schedule. 

(3) The sums of the sub-activities/ 

events, as applied to each work activity/ 

event, shall equal the total cost of such 

work activity/event. The total cost of all 

work activities/events shall equal the 

contract price. 

(4) Insurance and similar items shall 

be prorated and included in the cost of 

each branch of the work. 

(5) The cost schedule shall include 

separate cost information for the 

systems listed in the table in this 

paragraph (b)(5). The percentages listed 

in the following table are proportions of 

the cost listed in the Contractor’s cost 

schedule and identify, for payment 

purposes, the value of the work to 

adjust, correct and test systems after the 

material has been installed. Payment of 

the listed percentages will be made only 

after the Contractor has demonstrated 

that each of the systems is substantially 

complete and operates as required by 

the contract. 

VALUE OF ADJUSTING, CORRECTING, AND TESTING SYSTEM

System Percent 

Pneumatic tube system ....................................................................................................................................................................... 10 

Incinerators (medical waste and trash) ............................................................................................................................................... 5 

Sewage treatment plant equipment ..................................................................................................................................................... 5 

Water treatment plant equipment ........................................................................................................................................................ 5 

Washers (dish, cage, glass, etc.) ........................................................................................................................................................ 5 

Sterilizing equipment ........................................................................................................................................................................... 5 

Water distilling equipment ................................................................................................................................................................... 5 

Prefab temperature rooms (cold, constant temperature) .................................................................................................................... 5 

Entire air-conditioning system (Specified under 600 Sections) .......................................................................................................... 5 

Entire boiler plant system (Specified under 700 Sections) ................................................................................................................. 5 

General supply conveyors ................................................................................................................................................................... 10 

Food service conveyors ....................................................................................................................................................................... 10 

Pneumatic soiled linen and trash system ............................................................................................................................................ 10 

Elevators and dumbwaiters ................................................................................................................................................................. 10 

Materials transport system .................................................................................................................................................................. 10 

Engine-generator system ..................................................................................................................................................................... 5 

Primary switchgear .............................................................................................................................................................................. 5 

Secondary switchgear ......................................................................................................................................................................... 5 

Fire alarm system ................................................................................................................................................................................ 5 

Nurse call system ................................................................................................................................................................................ 5 

Intercom system .................................................................................................................................................................................. 5 

Radio system ....................................................................................................................................................................................... 5 

TV (entertainment) system .................................................................................................................................................................. 5 

(c) In addition to this cost schedule, 

the Contractor shall submit such unit 

costs as may be specifically requested. 

The unit costs shall be those used by the 

Contractor in preparing its bid and will 

not be binding as pertaining to any 

contract changes. 

(d) The Contracting Officer will 

consider for monthly progress payments 

material and/or equipment procured by 

the Contractor and stored on the 

construction site, as space is available, 

or at a local approved location off the 

site, under such terms and conditions as 

the Contracting Officer approves, 

including but not limited to the 

following— 

(1) The materials or equipment are in 

accordance with the contract 

requirements and/or approved samples 

and shop drawings; 

(2) The materials and/or equipment 

are approved by the resident engineer; 

(3) The materials and/or equipment 

are stored separately and are readily 

available for inspection and inventory 

by the resident engineer; 

(4) The materials and/or equipment 

are protected against weather, theft and 

other hazards and are not subjected to 

deterioration; and 

(5) The Contractor obtains the 

concurrence of its surety for off-site 

storage. 

(e) The Government reserves the right 

to withhold payment until samples, 

shop drawings, engineer’s certificates, 

additional bonds, payrolls, weekly 

statements of compliance, proof of title, 

nondiscrimination compliance reports, 

or any other requirements of this 

contract, have been submitted to the 

satisfaction of the Contracting Officer. 

(f) The Contracting Officer will notify 

the Contractor in writing within 10 

calendar-days of exercising retainage 

against any payment in accordance with 


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FAR clause 52.232–5(e). The notice 

shall disclose the amount of the 

retainage in value and percent retained 

from the payment, and provide 

explanation for the retainage. 

(End of clause) 

Alternate I (Nov 2018). If the 

specifications include guarantee period 

services, the Contracting Officer shall 

include the following paragraphs as 

additions to paragraph (b) of the basic 

clause: 

(6)(i) The Contractor shall at the time 

of contract award furnish the total cost 

of the guarantee period services in 

accordance with specification section(s) 

covering guarantee period services. The 

Contractor shall submit, within 15 

calendar days of receipt of the notice to 

proceed, a guarantee period 

performance program that shall include 

an itemized accounting of the number of 

work-hours required to perform the 

guarantee period service on each piece 

of equipment. The Contractor shall also 

submit the established salary costs, 

including employee fringe benefits, and 

what the Contractor reasonably expects 

to pay over the guarantee period, all of 

which will be subject to the Contracting 

Officer’s approval. 

(ii) The cost of the guarantee period 

service shall be prorated on an annual 

basis and paid in equal monthly 

payments by VA during the period of 

guarantee. In the event the installer does 

not perform satisfactorily during this 

period, all payments may be withheld 

and the Contracting Officer shall inform 

the Contractor of the unsatisfactory 

performance, allowing the Contractor 10 

days to correct deficiencies and comply 

with the contract. The guarantee period 

service is subject to those provisions as 

set forth in the Payments and Default 

clauses. 

■ 34. Add section 852.232–71 to read as 

follows: 

852.232–71 Payments Under Fixed-Price 

Construction Contracts (Including NAS– 

CPM). 

As prescribed in 832.111–70, insert 

the following clause in contracts that 

contain a section entitled ‘‘Network 

Analysis System—Critical Path Method 

(NAS–CPM).’’ 

Payments Under Fixed-Price 

Construction Contracts (Including 

NAS–CPM) (Nov 2018) 

The clause FAR 52.232–5, Payments 

Under Fixed-Price Construction 

Contracts, is implemented as follows: 

(a) Retainage. (1) The Contracting 

Officer may retain funds— 

(i) Where performance under the 

contract has been determined to be 

deficient or the Contractor has 

performed in an unsatisfactory manner 

in the past; or 

(ii) As the contract nears completion, 

to ensure that deficiencies will be 

corrected and that completion is timely. 

(2) Examples of deficient performance 

justifying a retention of funds include, 

but are not restricted to, the following— 

(i) Unsatisfactory progress as 

determined by the Contracting Officer; 

(ii) Failure to meet schedule in 

Schedule of Work Progress; 

(iii) Failure to present submittals in a 

timely manner; or 

(iv) Failure to comply in good faith 

with approved subcontracting plans, 

certifications, or contract requirements. 

(3) Any level of retention shall not 

exceed 10 percent either where there is 

determined to be unsatisfactory 

performance, or when the retainage is to 

ensure satisfactory completion. Retained 

amounts shall be paid promptly upon 

completion of all contract requirements, 

but nothing contained in this paragraph 

(a)(3) shall be construed as limiting the 

Contracting Officer’s right to withhold 

funds under other provisions of the 

contract or in accordance with the 

general law and regulations regarding 

the administration of Government 

contracts. 

(b) The Contractor shall submit a 

schedule of costs in accordance with the 

requirements of section ‘‘Network 

Analysis System—Critical Path Method 

(NAS–CPM)’’ to the Contracting Officer 

for approval within 90 calendar days 

after date of receipt of notice to proceed. 

The approved cost schedule will be one 

of the bases for determining progress 

payments to the Contractor for work 

completed. 

(1) Costs as shown on this schedule 

must be true costs and the resident 

engineer may require the Contractor to 

submit its original estimate sheets or 

other information to substantiate the 

detailed makeup of the cost schedule. 

(2) The total costs of all work 

activities/events shall equal the contract 

price. 

(3) Insurance and similar items shall 

be prorated and included in each work 

activity/event cost of the critical path 

method (CPM). 

(4) The CPM shall include a separate 

cost loaded activity for adjusting and 

testing of the systems listed in the table 

in paragraph (b)(5) of this clause. The 

percentages listed in paragraph (b)(5) 

will be used to determine the cost of 

adjust and test work activities/events 

and identify, for payment purposes, the 

value of the work to adjust, correct and 

test systems after the material has been 

installed. 

(5) Payment for adjust and test 

activities will be made only after the 

Contractor has demonstrated that each 

of the systems is substantially complete 

and operates as required by the contract. 

VALUE OF ADJUSTING, CORRECTING, AND TESTING SYSTEM

System Percent 

Pneumatic tube system ....................................................................................................................................................................... 10 

Incinerators (medical waste and trash) ............................................................................................................................................... 5 

Sewage treatment plant equipment ..................................................................................................................................................... 5 

Water treatment plant equipment ........................................................................................................................................................ 5 

Washers (dish, cage, glass, etc.) ........................................................................................................................................................ 5 

Sterilizing equipment ........................................................................................................................................................................... 5 

Water distilling equipment ................................................................................................................................................................... 5 

Prefab temperature rooms (cold, constant temperature) .................................................................................................................... 5 

Entire air-conditioning system (Specified under 600 Sections) .......................................................................................................... 5 

Entire boiler plant system (Specified under 700 Sections) ................................................................................................................. 5 

General supply conveyors ................................................................................................................................................................... 10 

Food service conveyors ....................................................................................................................................................................... 10 

Pneumatic soiled linen and trash system ............................................................................................................................................ 10 

Elevators and dumbwaiters ................................................................................................................................................................. 10 

Materials transport system .................................................................................................................................................................. 10 

Engine-generator system ..................................................................................................................................................................... 5 

Primary switchgear .............................................................................................................................................................................. 5 

Secondary switchgear ......................................................................................................................................................................... 5 


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VALUE OF ADJUSTING, CORRECTING, AND TESTING SYSTEM—Continued 

System Percent 

Fire alarm system ................................................................................................................................................................................ 5 

Nurse call system ................................................................................................................................................................................ 5 

Intercom system .................................................................................................................................................................................. 5 

Radio system ....................................................................................................................................................................................... 5 

TV (entertainment) system .................................................................................................................................................................. 5 

(c) In addition to this cost schedule, 

the Contractor shall submit such unit 

costs as may be specifically requested. 

The unit costs shall be those used by the 

Contractor in preparing its bid and will 

not be binding as pertaining to any 

contract changes. 

(d) The Contracting Officer will 

consider for monthly progress payments 

material and/or equipment procured by 

the Contractor and stored on the 

construction site, as space is available, 

or at a local approved location off the 

site, under such terms and conditions as 

the Contracting Officer approves, 

including but not limited to the 

following— 

(1) The materials or equipment are in 

accordance with the contract 

requirements and/or approved samples 

and shop drawings; 

(2) The materials and/or equipment 

are approved by the resident engineer; 

(3) The materials and/or equipment 

are stored separately and are readily 

available for inspection and inventory 

by the resident engineer; 

(4) The materials and/or equipment 

are protected against weather, theft and 

other hazards and are not subjected to 

deterioration; and 

(5) The Contractor obtains the 

concurrence of its surety for off-site 

storage. 

(e) The Government reserves the right 

to withhold payment until samples, 

shop drawings, engineer’s certificates, 

additional bonds, payrolls, weekly 

statements of compliance, proof of title, 

nondiscrimination compliance reports, 

or any other requirements of this 

contract, have been submitted to the 

satisfaction of the Contracting Officer. 

(f) The Contracting Officer will notify 

the Contractor in writing within 10 

calendar-days of exercising retainage 

against any payment in accordance with 

FAR clause 52.232–5(e). The notice 

shall disclose the amount of the 

retainage in value and percent retained 

from the payment, and provide 

explanation for the retainage. 

(End of clause) 

Alternate I (Nov 2018). If the 

specifications include guarantee period 

services, the Contracting Officer shall 

include the following paragraphs as 

additions to paragraph (b) of the basic 

clause: 

(6)(i) The Contractor shall show on 

the critical path method (CPM) the total 

cost of the guarantee period services in 

accordance with the guarantee period 

service section(s) of the specifications. 

This cost shall be priced out when 

submitting the CPM cost loaded 

network. The cost submitted shall be 

subject to the approval of the 

Contracting Officer. The activity on the 

CPM shall have money only and not 

activity time. 

(ii) The Contractor shall submit with 

the CPM a guarantee period 

performance program which shall 

include an itemized accounting of the 

number of work-hours required to 

perform the guarantee period service on 

each piece of equipment. The Contractor 

shall also submit the established salary 

costs, including employee fringe 

benefits, and what the Contractor 

reasonably expects to pay over the 

guarantee period, all of which will be 

subject to the Contracting Officer’s 

approval. 

(iii) The cost of the guarantee period 

service shall be prorated on an annual 

basis and paid in equal monthly 

payments by VA during the period of 

guarantee. In the event the installer does 

not perform satisfactorily during this 

period, all payments may be withheld 

and the Contracting Officer shall inform 

the Contractor of the unsatisfactory 

performance, allowing the Contractor 10 

days to correct and comply with the 

contract. The guarantee period service is 

subject to those provisions as set forth 

in the Payments and Default clauses. 

■ 35. Section 852.232–72 is revised to 

read as follows: 

852.232–72 Electronic Submission of 

Payment Requests. 

As prescribed in 832.7001–2, insert 

the following clause: 

Electronic Submission of Payment 

Requests (Nov 2018) 

(a) Definitions. As used in this 

clause— 

(1) Contract financing payment has 

the meaning given in FAR 32.001; 

(2) Designated agency office means 

the office designated by the purchase 

order, agreement, or contract to first 

receive and review invoices. This office 

can be contractually designated as the 

receiving entity. This office may be 

different from the office issuing the 

payment; 

(3) Electronic form means an 

automated system transmitting 

information electronically according to 

the accepted electronic data 

transmission methods and formats 

identified in paragraph (c) of this clause. 

Facsimile, email, and scanned 

documents are not acceptable electronic 

forms for submission of payment 

requests; 

(4) Invoice payment has the meaning 

given in FAR 32.001; and 

(5) Payment request means any 

request for contract financing payment 

or invoice payment submitted by the 

Contractor under this contract. 

(b) Electronic payment requests. 

Except as provided in paragraph (e) of 

this clause, the Contractor shall submit 

payment requests in electronic form. 

Purchases paid with a Government-wide 

commercial purchase card are 

considered to be an electronic 

transaction for purposes of this rule, and 

therefore no additional electronic 

invoice submission is required. 

(c) Data transmission. A Contractor 

must ensure that the data transmission 

method and format are through one of 

the following: 

(1) VA’s Electronic Invoice 

Presentment and Payment System at the 

current website address provided in the 

contract. 

(2) Any system that conforms to the 

X12 electronic data interchange (EDI) 

formats established by the Accredited 

Standards Center (ASC) and chartered 

by the American National Standards 

Institute (ANSI). 

(d) Invoice requirements. Invoices 

shall comply with FAR 32.905. 

(e) Exceptions. If, based on one of the 

circumstances in this paragraph (e), the 

Contracting Officer directs that payment 

requests be made by mail, the 

Contractor shall submit payment 

requests by mail through the United 

States Postal Service to the designated 

agency office. Submission of payment 

requests by mail may be required for— 


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Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49311 

(1) Awards made to foreign vendors 

for work performed outside the United 

States; 

(2) Classified contracts or purchases 

when electronic submission and 

processing of payment requests could 

compromise the safeguarding of 

classified or privacy information; 

(3) Contracts awarded by Contracting 

Officers in the conduct of emergency 

operations, such as responses to 

national emergencies; 

(4) Solicitations or contracts in which 

the designated agency office is a VA 

entity other than the VA Financial 

Services Center in Austin, Texas; or 

(5) Solicitations or contracts in which 

the VA designated agency office does 

not have electronic invoicing capability 

as described above. 

(End of clause) 

852.236–82 and 852.236–83 [Removed and 

Reserved] 

■ 36. Remove and reserve sections 

852.236–82 and 852.236–83. 

PART 870—SPECIAL PROCUREMENT 

CONTROLS 

■ 37. The authority citation for part 870 

is revised to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1702; and 48 CFR 1.301–1.304. 

870.112 and 870.113 [Removed] 

■ 38. Remove sections 870.112 and 

870.113. 

[FR Doc. 2018–18984 Filed 9–28–18; 8:45 am] 

BILLING CODE 8320–01–P 


amozie on DSK3GDR082PROD with RULES