23204 Federal Register / Vol. 77, No. 75 / Wednesday, April 18, 2012 / Proposed Rules 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Parts 832 and 852 

RIN 2900–AN97 

VA Acquisition Regulation: Electronic 

Submission of Payment Requests 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

acquisition regulations to require 

contractors to submit payment requests 

in electronic form in order to enhance 

customer service, departmental 

productivity, and adoption of 

innovative information technology, 

including the appropriate use of 

commercial best practices. 

DATES: Comments must be received by 

VA on or before June 18, 2012. 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulations 

Management (02REG), Department of 

Veterans Affairs, 810 Vermont Ave. 

NW., Room 1068, Washington, DC 

20420; or by fax to (202) 273–9026. 

Comments should indicate they are 

submitted in response to ‘‘RIN 2900– 

AN97—VA Acquisition Regulation: 

Electronic Submission of Payment 

Requests.’’ Copies of comments received 

will be available for public inspection in 

the Office of Regulation Policy and 

Management, Room 1063B, between the 

hours of 8 a.m. and 4:30 p.m., Monday 

through Friday (except holidays). Please 

call (202) 461–4902 for an appointment. 

(This is not a toll free number.) In 

addition, during the comment period, 

comments are available online through 

the Federal Docket Management System 

(FDMS) at www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Tanya Reid, Procurement Policy Service 

(003A2A), Department of Veterans 

Affairs, 810 Vermont Ave. NW., 

Washington, DC 20420, (202) 461–7178. 

(This is not a toll free number.) 

SUPPLEMENTARY INFORMATION: On July 7, 

2009, VA published a notice, in the 

Federal Register at 74 FR 32223, of a 

class deviation to Federal Acquisition 

Regulation (FAR) 32.905 (48 CFR 

32.905), which added an interim 

electronic invoicing clause in the VA 

Acquisition Regulation (VAAR). The 

interim clause strongly encourages 

contractors to voluntarily submit 

invoices electronically, which VA 

determined would improve the accuracy 

and efficiency of payment processing. 

Under this interim clause, contractors 

who choose to use electronic invoicing 

have three options to submit payment 

requests in electronic form: (1) 

Electronic Invoice Presentment and 

Payment System; (2) American National 

Standards Institute (ANSI) X12 

electronic data interchange (EDI) 

formats; or (3) another electronic form 

as prescribed by the contract 

administration office and the designated 

agency office. VA’s notice regarding 

interim, optional electronic invoicing 

noted VA intended to initiate noticeand-comment rulemaking to amend the 

VAAR to make electronic invoicing 

mandatory. 

Mandatory electronic invoice 

submission is necessary to enhance 

compliance and/or consistency with a 

long history of rules and regulations 

governing the accuracy, timeliness, and 

cost-effectiveness of the Federal 

Government’s payment process. 

In 1982, Congress enacted the Prompt 

Payment Act (‘‘Act’’), Public Law 97– 

177, to require Federal agencies to pay 

their bills on a timely basis, to pay 

interest penalties when payments are 

made late, and to take discounts only 

when payments are made by the 

discount date. The Act, as amended, is 

found at 31 U.S.C. Chapter 39. To 

implement the Act, the Office of 

Management and Budget (OMB) issued 

Circular A–125 (‘‘Prompt Payment ’’) in 

August 1982 (47 FR 37321). In response 

to changes to the Act that Congress 

made in the Prompt Payment Act 

Amendments of 1988, Public Law 100– 

496, OMB revised Circular A–125 in 

December 1989 (54 FR 52700). On June 

17, 1998, OMB requested public 

comments on proposed revisions to 

Circular A–125 (63 FR 33000). The 

Circular was updated to reflect the 

increased use of electronic commerce in 

the Federal Government and in the 

private sector, including electronic 

financial systems and electronic funds 

transfer. OMB responded to the 

comments that were received on the 

proposed revisions, issued final 

revisions to its Prompt Payment 

Circular, and codified these revisions in 

new part 1315 of 5 CFR (64 FR 52580). 

With the incorporation of the Prompt 

Payment rules into 5 CFR part 1315, 

OMB rescinded Circular A–125. 

The prompt payment rules at 5 CFR 

part 1315 address the increased use of 

electronic commercial financial systems 

and promote the use of government 

credit cards and accelerated payment 

methods. This proposed rule enhances 

compliance with 5 CFR part 1315 by 

requiring the use of electronic 

commerce. Electronic invoice 

submission replaces payment delays 

from traditional postal delivery with 

immediate electronic transmission of 

data. As a result, VA’s ability to make 

timely payments, reduce interest 

penalties on late payments, and increase 

the dollar amount of discounts realized 

from prompt payment is improved. 

FAR subpart 32.9 (48 CFR part 32.9) 

prescribes policies, procedures, and 

clauses for implementing the prompt 

payment regulations at 5 CFR part 1315. 

In relevant part, FAR 32.903 requires 

federal agencies to establish policies 

and procedures necessary to implement 

FAR subpart 32.9, and provides the 

agencies the latitude to prescribe 

additional standards for establishing 

invoice payment due dates necessary to 

support agency programs and foster 

prompt payment to contractors as well 

as the latitude to adopt different 

payment procedures in order to 

accommodate unique circumstances, 

provided that such procedures are 

consistent with the policies in OMB’s 

prompt payment regulations. This 

proposed rule enhances compliance 

with FAR 32.903 by requiring electronic 

invoice submission. Electronic invoice 

submission replaces payment delays 

from traditional postal delivery with 

immediate electronic transmission of 

data. By eliminating delays associated 

with traditional processing, electronic 

submission fosters the prompt payment 

of invoices to contractors. 

FAR 32.905(b)(1) defines the specific 

data elements that must be included on 

a proper invoice. Electronic invoice 

submission ensures invoice validity by 

employing automated data validation. 

Automated data validation enforces data 

element accuracy and completeness. 

Invalid invoices are immediately 

returned to the contractor for correction 

without the delays associated with 

traditional postal delivery. 

VA’s proposed requirement for 

contractors to use electronic invoicing 

when submitting payment requests 

supports several of the principal 

purposes stated in section 2 of the 

E-Government Act of 2002, Public Law 

107–347, including promoting the use of 

the Internet and other information 

technologies to provide increased 

opportunities for citizen participation in 

Government, improving the ability of 

the Government to achieve agency 

missions and program performance 

goals, reducing costs and burdens for 

businesses and other Government 

entities, and transforming agency 

operations by utilizing, where 

appropriate, best practices from public 

and private sector organizations. 

Further, section 202(b)(3) of the EGovernment Act of 2002 requires 

Federal agencies to develop 

performance measures that demonstrate 

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Federal Register / Vol. 77, No. 75 / Wednesday, April 18, 2012 / Proposed Rules 23205 

how electronic government enables 

progress towards agency objectives, 

strategic goals, and statutory mandates, 

and specifically directs agencies to 

consider: (1) Customer service; (2) 

agency productivity; and (3) the 

adoption of innovative information 

technology, including the appropriate 

use of commercial best practices. VA 

anticipates that this rulemaking 

requiring contractors to use electronic 

invoicing to submit payment requests 

would reflect positively when rated 

against the aforementioned performance 

measures given that it would ensure 

superior customer service, increase 

agency productivity, and be consistent 

with the longstanding best practice of 

electronic invoicing and direct deposit 

in the commercial marketplace. 

The Improper Payments Information 

Act of 2002, Public Law 107–300, 

enacted on Nov. 26, 2002, as amended 

by the Improper Payments Elimination 

and Recovery Act of 2010 (IPERA), 

Public Law 111–204, enacted on July 22, 

2010, requires Federal agencies to 

annually review the programs it 

oversees and determine if those 

programs and activities may be 

susceptible to significant erroneous 

payments. Section 2(h)(4) of IPERA 

requires the head of each agency to 

conduct a financial management 

improvement program, consistent with 

rules prescribed by the Director of OMB. 

In conducting the program, the head of 

the agency shall, as the first priority of 

the program, address problems that 

contribute directly to agency improper 

payments and may seek to reduce errors 

and waste in other agency programs and 

operations. 

Executive Order 13520 of November 

20, 2009 (‘‘Reducing Improper 

Payments’’) directed the Federal 

Government to make every effort to 

confirm that the right recipient is 

receiving the right payment for the right 

reason at the right time. This proposed 

rule would address problems that 

contribute to improper payments such 

as data entry errors, manual processing 

errors, incorrect vendor selection, 

duplicate payments, and payment 

delays while eliminating the waste 

associated with traditional payment 

processing. 

Other Federal Government 

departments and agencies have 

implemented similar electronic invoice 

submission requirements. In January 

2004, the Department of Defense 

updated the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to reflect the new electronic 

invoicing mandate. DFARS 252.232– 

7003 (48 CFR 252.232–7003) outlines 

the electronic invoice submission 

process for contractor payments. In 

2006, the U.S. Government 

Accountability Office issued a report to 

Congressional Committees entitled 

‘‘DoD Payments to Small Businesses: 

Implementation and Effective 

Utilization of Electronic Invoicing 

Could Further Reduce Late Payments’’ 

(GAO–06–358). The report confirmed 

the effectiveness of electronic invoicing 

in eliminating paper and redundant data 

entry; improving data accuracy; 

reducing the number of lost or 

misplaced documents; and ultimately, 

improving timely payments to 

contractors. 

The U.S. Department of the Interior 

issued a special notice mandating 

electronic submittal of invoices and 

exchange of payment information to its 

suppliers of goods and services 

beginning in May 2011. The U.S. 

Department of the Treasury mandated 

electronic invoicing for its commercial 

vendors by the end of fiscal year 2012. 

VA proposes to amend the VAAR by 

adding subpart 832.10 and clause 

852.273–76 to implement mandatory 

electronic invoicing as part of its 

strategic plan to improve the 

commercial vendor payment process. 

The automated data validation, digital 

transmission, and expedited payment 

and processing would reduce the errors 

inherent in a manual invoice processing 

system, thereby reducing improper 

payments. Expedited payment processes 

would allow VA to take advantage of 

prompt payment discounts offered by its 

vendors thereby reducing the cost of 

goods and services furnished VA while 

simultaneously reducing the cost to 

contractors of manual invoice 

processing. As a result, VA would 

achieve compliance and consistency 

with all applicable laws governing the 

invoice payment process and use of 

information technologies. 

This proposed amendment to the 

VAAR is anticipated to reduce the errors 

in the processing of contractor payments 

by including automated invoice data 

validation checks. VA’s electronic 

invoicing system would check the 

contractor-submitted invoice data 

against contract invoice requirements 

and automatically refer improper or 

erroneous invoices back to the 

contractor for immediate correction. 

This would facilitate timely correction 

of administrative errors and timely 

payment of contractors when coupled 

with the existing Electronic Funds 

Transfer procedure (bank direct deposit) 

in use by VA. Automated invoice data 

validation checks would reduce the 

manual processing burden and 

consequent errors for both government 

and contractor personnel and reduce the 

risk of improper payment. These same 

data validation processes would ensure 

payment requests comply with 

applicable laws. In addition, electronic 

invoicing would expedite the payment 

process, and thereby, permit VA to take 

greater advantage of discounts afforded 

by contractors for early payment. The 

proposed benefits of electronic invoice 

submission to the contractor community 

would include speedier payments of 

balances due, as well as reduced costs 

due to the elimination of postage fees, 

and related material and supply 

expenses. 

Currently, approximately 25 percent 

of the vendor community submits 

electronic payment requests to the VA 

Financial Services Center using one of 

two data transmission methods. Some 

contractors use VA’s Electronic Invoice 

Presentment and Payment System. 

Other contractors use systems that rely 

on the standard EDI transaction sets. 

These methods of data transmission are 

discussed in more detail below. 

Under proposed VAAR 832.1003–1 

and VAAR 852.273–76(c), electronic 

invoices would be submitted by the 

Internet using either: (1) VA’s Electronic 

Invoice Presentation and Payment 

System, or (2) any system that conforms 

to the X12 EDI formats established by 

the Accredited Standards Center (ASC) 

and chartered by ANSI. These are the 

same methods that many VA contractors 

are voluntarily using under VA’s current 

interim electronic invoicing clause. See 

74 FR 32223. VA’s Electronic Invoice 

Presentation and Payment System 

allows invoice submission through two 

methods. The first method is an 

internet-based webform template that 

expands the ability of smaller 

contractors to utilize electronic 

invoicing and allows a contractor to 

directly upload invoice data that 

automatically populates VA payment 

systems. The second method directly 

interfaces with the contractor’s billing 

system and transmits invoice data to VA 

payment systems. The U.S. ANSI X12 is 

the predominant set of standards 

defining the structure, format, and 

content of business transactions 

conducted through EDI. ANSI X12, 

chartered more than 30 years ago, 

develops and maintains EDI standards. 

Access to VA’s Electronic Invoice 

Presentation and Payment System 

would be provided to contractors at no 

cost. 

As an alternative to using the VA 

Electronic Invoice Presentation and 

Payment System, proposed VAAR 

832.1003–1(b) and VAAR 852.273– 

76(c)(2) would also permit contractors 

to submit electronic invoices using any 

system that conforms to X12 EDI 

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23206 Federal Register / Vol. 77, No. 75 / Wednesday, April 18, 2012 / Proposed Rules 

formats established by ASC and 

chartered by ANSI. This would allow 

contractors some flexibility in deciding 

how they want to communicate with 

VA. For example, some contractors may 

already have a system established that is 

compatible with above-mentioned EDI 

requirements in order to communicate 

with other federal agencies. Those 

contractors would be able to use that 

same system to submit electronic 

invoices to VA. Additionally, 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. 

In proposed VAAR 832.1003(b) and 

VAAR 852.273–76(e), VA proposes to 

include five exceptions to the 

mandatory use of electronic invoicing 

by contractors. VA proposes to allow 

contracting officers to require 

contractors to submit payment requests 

by mail, through the United States 

Postal Service, in the following 

circumstances. First, contracting officers 

may direct that contractors submit 

invoicing by mail for awards that are 

made to foreign vendors for work 

performed outside the United States 

because foreign vendors may lack 

Internet access, familiarity with, or 

ability to process an electronic invoice 

with the standard commercial protocols 

and methods in the proposed clause. 

Second, contracting officers may direct 

that contractors submit invoicing by 

mail for classified contracts or 

purchases when electronic submission 

and processing of payment requests 

could compromise the safeguarding of 

classified or privacy information. In 

such cases, the potential damage far 

outweighs any efficiencies or benefits to 

be gained by electronic processing. 

Third, contracting officers may direct 

that contractors submit invoicing by 

mail for contracts awarded by 

contracting officers in the conduct of 

emergency operations, such as 

responses to national emergencies 

because such contracts may be 

performed in areas and under 

circumstances where Internet 

availability and electronic invoicing are 

not practical. Fourth, contracting 

officers may direct that contractors 

submit invoicing by mail for contracts 

awarded by contracting officers for 

solicitations or contracts in which the 

designated agency office (DAO) is a VA 

entity other than the VA Financial 

Services Center in Austin, Texas. Fifth, 

contracting officers may direct that 

contractors submit invoicing by mail for 

solicitations or contracts awarded by 

contracting officers in cases where the 

DAO does not have electronic invoicing 

capability as described above. 

Proposed VAAR 832.1003–2 would 

require a contracting officer to insert the 

proposed contract clause, VAAR 

852.273–76, Electronic Submission of 

Payment Requests, in all solicitations 

and contracts. The proposed VAAR 

852.273–76 would require the electronic 

submission of invoices for contracts 

unless the contracting officer 

determines that one or more of the 

exceptions at VAAR 832.1003(b) 

applies. In cases where an exception 

would apply, the contracting officer 

would provide invoice mailing 

instructions to the contractor. The VA 

Financial Services Center would serve 

as the DAO for commercial goods and 

services purchased by VA, and would 

be the only entity which operates the 

electronic invoicing capabilities as 

described above. Accordingly, VAAR 

832.1003(b)(4) allows an exception to 

the electronic invoice requirement for 

solicitations or contracts in which the 

DAO is a VA entity other than the VA 

Financial Services Center in Austin, 

Texas. 

Public Comments 

VA welcomes public comments on all 

aspects of the proposed rule, however, 

the Department is specifically interested 

in feedback on the following areas: (1) 

While VA’s voluntary compliance 

program has been in effect for 3 years, 

the VA is soliciting comment on 

whether a final rule should include an 

appropriate phase-in period for 

electronic reporting requirements; (2) 

The Department is seeking input on 

whether the proposal would create any 

significant burdens or transition costs 

for contractors; if so what types of costs 

or burdens might be imposed?; (3) 

While VA generally believes that the 

rapid pace of technological change has 

eliminated many challenges to full 

electronic commerce and internet access 

for contractors e.g. both current and 

potential federal government registrants 

are already required to register in the 

Centralized Contractor Registry (CCR), 

the VA is interested in comments on 

whether an exemption process should 

be included in the final rule; and, (4) 

Finally, VA is seeking comment on 

whether the elimination of the ‘‘other 

electronic means’’ option previously 

available under VA’s voluntary program 

would create any undue burdens for 

contractors. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action,’’ which requires 

review by OMB, as ‘‘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.’’ 

The economic, interagency, 

budgetary, legal, and policy 

implications of this regulatory action 

have been examined and it has been 

determined not to be a significant 

regulatory action under Executive Order 

12866. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule would not have a 

significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

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

Secretary acknowledges that this 

proposed rule could affect some small 

entities; however, the economic impact 

is not anticipated to be significant and 

is expected to be outweighed by the 

positive economic impact of the 

proposed rule. Small entities should 

realize a positive economic impact as a 

result of electronic invoice submission 

due to the avoidance of traditional 

invoicing costs such as postage and 

mailing supplies. VA’s proposed data 

transmission methods for electronic 

invoice submission would 

accommodate all existing accounts 

receivable/billing systems that 

contractors are currently using to submit 

electronic invoices to VA. As a result, 

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Federal Register / Vol. 77, No. 75 / Wednesday, April 18, 2012 / Proposed Rules 23207 

no additional hardware or software 

purchases by contractors are necessary 

to submit electronic invoices. 

Additionally, the VA electronic invoice 

payment and presentment system is 

provided to all contractors free of 

charge. No negative economic impact 

has been reported by small entities 

voluntarily using electronic invoice 

submission in accordance with the 

existing interim electronic invoicing 

clause in the VAAR. In 2006, the U.S. 

Government Accountability Office 

issued a report to Congressional 

Committees entitled ‘‘DoD Payments to 

Small Businesses: Implementation and 

Effective Utilization of Electronic 

Invoicing Could Further Reduce Late 

Payments’’ (GAO–06–358). The report 

confirmed the effectiveness of electronic 

invoicing in eliminating paper and 

redundant data entry; improving data 

accuracy; reducing the number of lost or 

misplaced documents; and ultimately, 

improving timely payments to small 

businesses. Therefore, pursuant to 5 

U.S.C. 605(b), this proposed rule is 

exempt from the initial and final 

regulatory flexibility analysis 

requirements of sections 603 and 604. 

Paperwork Reduction Act 

This proposed rule does not impose 

any additional information collection 

requirements requiring approval of 

OMB under the Paperwork Reduction 

Act, 44 U.S.C. 3501, et seq. Collections 

of information referenced in VAAR 

Parts 832 and 852 have previously been 

approved in accordance with OMB 

prompt payment regulations at 5 CFR 

Part 1315. See 64 FR 52580–01. 

Collections relating to the submission 

and payment of invoices are approved 

under OMB Control Numbers 9000– 

0070 and 0102, which govern the 

submission of adequate documentation 

to support contractor requests for 

payment. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

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 an 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 proposed rule would have no such 

effect on State, local, and tribal 

governments, or on the private sector. 

Catalog of Federal Domestic Assistance 

Program 

There is no Catalog of Federal 

Domestic Assistance program number 

and title for the program in this 

proposal. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, 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. John 

R. Gingrich, Chief of Staff, Department 

of Veterans Affairs, approved this 

document on February 24, 2012, for 

publication. 

List of Subjects 

48 CFR Part 832 

Government procurement. 

48 CFR Part 852 

Government procurement; Reporting 

and recordkeeping requirements. 

Dated: April 12, 2012. 

Robert C. McFetridge, 

Director of Regulation Policy and 

Management, Office of the General Counsel, 

Department of Veterans Affairs. 

For the reasons set forth in the 

preamble, the Department of Veterans 

Affairs proposes to amend 48 CFR 

chapter 8 as follows: 

CHAPTER 8—DEPARTMENT OF VETERANS 

AFFAIRS 

Subchapter E—General Contracting 

Requirements 

PART 832—CONTRACT FINANCING 

1. The authority citation for part 832 

continues to read as follows: 

Authority: 40 U.S.C. 121(c) and 48 CFR 

1.301–1.304. 

2. Add subpart 832.10 to read as 

follows: 

Subpart 832.10—Electronic Invoicing 

Requirements 

832.1001 General. 

832.1002 Definitions. 

832.1003 Electronic Payment Requests. 

832.1003–1 Data Transmission. 

832.1003–2 Contract Clause. 

Subpart 832.10—Electronic Invoicing 

Requirements 

832.1001 General. 

This subpart prescribes requirements 

and procedures for submitting and 

processing payment requests in 

electronic form. 

832.1002 Definitions. 

As used in this subpart: 

(a) Contract financing payment has 

the meaning given in FAR 32.001. 

(b) Designated agency office has the 

meaning given in 5 CFR 1315.2(m). 

(c) Electronic form means an 

automated system transmitting 

information electronically according to 

the accepted electronic data 

transmission methods identified in 

VAAR 832.1003–1. Facsimile, email, 

and scanned documents are not 

acceptable electronic forms for 

submission of payment requests. 

(d) Invoice payment has the meaning 

given in FAR 32.001. 

(e) Payment request means any 

request for contract financing payment 

or invoice payment submitted by a 

contractor under a contract. 

832.1003 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. 

832.1003–1 Data Transmission. 

The contractor shall submit electronic 

payment requests through: 

(a) VA’s Electronic Invoice 

Presentment and Payment System (See 

Web site at http://www.fsc.va.gov/ 

einvoice.asp.); 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). The X12 EDI Web site (http:// 

www.x12.org) includes additional 

information on EDI 810 and 811 

formats. 

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23208 Federal Register / Vol. 77, No. 75 / Wednesday, April 18, 2012 / Proposed Rules 

1The Notice of Proposed Rulemaking was 

published in the Federal Register on April 2, 2012. 

(77 FR 19,591). 

832.1003–2 Contract Clause. 

The contracting officer shall insert the 

clause at 852.273–76, Electronic 

Submission of Payment Requests, in all 

solicitations and contracts. 

Subchapter H—Clauses and Forms 

PART 852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

3. The authority citation for part 852 

continues to read as follows: 

Authority: 38 U.S.C. 501, 8127, 8128, and 

8151–8153; 40 U.S.C. 121(c) and 48 CFR 

1.301–1.304. 

Subpart 852.2—Texts of Provisions 

and Clauses 

4. Add 852.273–76 to subpart 852.2 to 

read as follows: 

852.273–76 Electronic Submission of 

Payment Requests. 

As prescribed in 832.1003–2, insert 

the following clause: 

Electronic Submission of Payment Requests 

(XXX 2012) 

(a) Definitions. As used in this clause— 

(1) Contract financing payment has the 

meaning given in FAR 32.001. 

(2) Designated agency office has the 

meaning given in 5 CFR 1315.2(m). 

(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. 

(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. (See Web site at http: 

//www.fsc.va.gov/einvoice.asp.) 

(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). The X12 

EDI Web site (http://www.x12.org) includes 

additional information on EDI 810 and 811 

formats. 

(d) Invoice requirements. Invoices shall 

comply with FAR 32.905. 

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

circumstances below, 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: 

(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) 

[FR Doc. 2012–9269 Filed 4–17–12; 8:45 am] 

BILLING CODE 8320–01–P 

DEPARTMENT OF TRANSPORTATION 

Surface Transportation Board 

49 CFR Parts 1108 and 1109 

[STB Docket No. EP 699] 

Assessment of Mediation and 

Arbitration Procedures 

AGENCY: Surface Transportation Board. 

ACTION: Supplemental Notice of 

Proposed Rulemaking. 

SUMMARY: The Surface Transportation 

Board has proposed regulations that 

would require Class I and Class II rail 

carriers to participate in the Board’s 

arbitration program, unless they file a 

prior written notice with the Board on 

an annual basis opting out of the 

program. By contrast, Class III rail 

carriers wishing to participate in the 

Board’s arbitration program could file a 

request for arbitration with the Board 

under this docket at any time, or could 

voluntarily agree to participate in 

arbitration on a case-by-case basis. A 

shipper wishing to participate in the 

Board’s arbitration program could so 

inform the Board on a case-by-case basis 

following the filing of a complaint. 

Pursuant to the Paperwork Reduction 

Act and Office of Management and 

Budget regulations, the Board now seeks 

comments regarding certain information 

pertaining to the proposed arbitration 

rules. 

DATES: Comments are due by June 18, 

2012. 

ADDRESSES: Comments may be 

submitted either via the Board’s e-filing 

process or in the traditional paper 

format. Any person using e-filing should 

attach a document and otherwise 

comply with the instructions at the 

E–FILING link on the Board’s Web site, 

at http://www.stb.dot.gov. Any person 

submitting a filing in the traditional 

paper format should send an original 

and 10 copies to: Surface Transportation 

Board, Attn: Docket No. EP 699, 395 E 

Street SW., Washington, DC 20423– 

0001. Copies of written comments 

received by the Board will be posted to 

the Board’s Web site at http:// 

www.stb.dot.gov and will be available 

for viewing and self-copying in the 

Board’s Public Docket Room, Suite 131, 

395 E Street SW., Washington, DC. 

Copies of the comments will also be 

available by contacting the Board’s 

Chief Records Officer by telephone at 

(202) 245–0236 or by mail at 395 E 

Street SW., Washington, DC 20423– 

0001. 

FOR FURTHER INFORMATION CONTACT: 

Virginia Strasser at (202) 245–0275. 

(Assistance for the hearing impaired is 

available through the Federal 

Information Relay Service (FIRS) at 1– 

800–877–8339.) 

SUPPLEMENTARY INFORMATION: By Notice 

of Proposed Rulemaking in Assessment 

of Mediation and Arbitration 

Procedures, EP 699 (STB served Mar. 

28, 2012),1 the Surface Transportation 

Board has proposed regulations that 

would require Class I and Class II rail 

carriers to participate in the Board’s 

arbitration program, unless they file a 

prior written notice with the Board on 

an annual basis opting out of the 

program. Pursuant to the Paperwork 

Reduction Act, 44 U.S.C. 3501 et seq. 

(PRA), and Office of Management and 

Budget (OMB) regulations at 5 CFR 

1320.8(d)(3), the Board now seeks 

comments regarding: (1) Whether the 

particular collection of information 

described below and in greater detail at 

77 FR 19,591 is necessary for the proper 

performance of the functions of the 

Board, including whether the collection 

has practical utility; (2) the accuracy of 

the Board’s burden estimates; (3) ways 

to enhance the quality, utility, and 

clarity of the information collected; and 

(4) ways to minimize the burden of the 

collection of information on the 

respondents, including the use of 

automated collection techniques or 

mstockstill on DSK4VPTVN1PROD with PROPOSALS