27682 Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 /Rules and Regulations

GENERAL SERVICES

ADMINISTRATION

41 CFR Part 101–35

RIN 3090–AG03

Relocation of FIRMR Provisions

Relating to the Use of Government

Telephone Systems and GSA Services

and Assistance

AGENCY: Office of Governmentwide

Policy; GSA.

ACTION: Interim rule.

SUMMARY: The General Services

Administration (GSA) is extending

Federal Property Management

Regulations provisions regarding

Management and Use of

Telecommunications Resources.

DATES: Effective date: This rule was

effective August 8, 1996. Expiration

date: August 8, 1999.

FOR FURTHER INFORMATION CONTACT:

David R. Middledorf, Office of

Governmentwide Policy, telephone

202–501–1551.

SUPPLEMENTARY INFORMATION: FPMR

interim F1 was published in the Federal

Register on August 7, 1996, 61 FR

41003. The expiration date of the

interim rule is August 8, 1998. This

supplement extends the expiration date

until August 8, 1999.

List of Subjects in 41 CFR Part 101–35

Archives and records, Computer

technology, Telecommunications,

Government procurement, Property

management, Records management,

Information technology. Therefore, the

expiration date for interim rule F–1

published at 61 FR 41003, August 7,

1996, is extended until August 8, 1999.

Dated: May 12, 1998.

David Barram,

Administrator of General Services.

[FR Doc. 98–13388 Filed 5–19–98; 8:45 am]

BILLING CODE 6820–34–M

DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 252

[DFARS Case 98–D012]

Defense Federal Acquisition

Regulation Supplement; Electronic

Funds Transfer

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for

comments.

SUMMARY: The Director of Defense

Procurement has issued an interim rule

amending the Defense Federal

Acquisition Regulation Supplement

(DFARS) to provide policy and

procedures for the use of the electronic

funds transfer (EFT) method of contract

payment when the payment office uses

the central contractor registration (CCR)

database as its source of EFT

information. This rule eliminates

requirements for duplicate submissions

of EFT information by DoD contractors.

DATES: Effective date: June 1, 1998.

Comment date: Comments on the

interim rule should be submitted in

writing to the address shown below on

or before July 20, 1998, to be considered

in the formulation of the final rule.

ADDRESSES: Interested parties should

submit written comments to: Defense

Acquisition Regulations Council, Attn:

Ms. Sandra G. Haberlin, PDUSD(A&T)

DP (DAR), IMD 3D139, 3062 Defense

Pentagon, Washington, DC 20301–3062.

Telefax number (703) 602–0350.

E-mail comments submitted over the

Internet should be addressed to:

dfars@acq.osd.mil

Please cite DFARS Case 98–D012 in

all correspondence related to this issue.

E-mail comments should cite DFARS

Case 98–D012 in the subject line.

FOR FURTHER INFORMATION CONTACT:

Ms. Sandra G. Haberline, (703) 602–

0131.

SUPPLEMENTARY INFORMATION:

A. Background

An interim rule amending the Federal

Acquisition Regulation (FAR) was

published in the Federal Register on

August 29, 1996 (61 FR 45770). The rule

added a new FAR Subpart 32.11,

Electronic Funds Transfer, which

provides policy and procedures for

Government payment by EFT. The rule

also added two contract clauses: FAR

52.232–33, Mandatory Information for

Electronic Funds Transfer Payment, and

FAR 52.232–34, Optional Information

for Electronic Funds Transfer Payment.

FAR 52.232–33 requires the contractor

to provide EFT information as a

condition of payment under the

contract. When FAR 52.232–33 will not

be included in a contract, FAR 52.232–

34 is used if EFT may become a viable

method of payment during the period of

contract performance, and the clause

becomes effective if the Government

and the contractor agree to commence

EFT. Both clauses require the contractor

to provide EFT information to the

cognizant payment office for each

contract awarded to the contractor.

A final DFARS rule was published in

the Federal Register on March 31, 1998

(63 FR 15316). The rule added DFARS

Subpart 204.73 and a contract clause at

DFARS 252.204–7004, Required Central

Contractor Registration, and requires

contractor registration in a DoD CCR

database prior to award of a contract,

basic agreement, basic ordering

agreement, or blanket purchase

agreement, unless the award results

from a solicitation issued on or before

May 31, 1998. The rule requires that

contractors register on a one-time basis,

and confirm on an annual basis that

their CCR registration is accurate and

complete. As part of the registration

process, contractors are required to

furnish their EFT payment information

into the CCR database.

This interim DFARs rule eliminates

conflicting and administratively

burdensome requirements for

contractors to provide EFT information

to the payment office for each contract

awarded (in accordance with FAR

52.232–33 or FAR 52.232–34), and into

the CCR database (in accordance with

DFARS 252.204–7004). This rule

prescribes the use of a new clause at

DFARS 252.232–7009, Payment by

Electronic Funds Transfer (CCR),

instead of either EFT FAR clause, for

contracts that include the clause at

252.204–7004 and that will be paid by

EFT. DFARS 252.232–7009 is especially

tailored for those DoD contractors that

are required to register in the CCR

database.

B. Regulatory Flexibility Act

The interim rule may have a

significant beneficial economic impact

on a substantial number of small entities

within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq. An

Initial Regulatory Flexibility Analysis

has been performed and is summarized

as follows:

The objective of the rule is to revise

current procedures for the use of

electronic funds transfer in order to

accommodate the DoD requirement for

contractors to register into a CCR

database; thus, eliminating conflicting

and administratively burdensome

requirements for both large and small

contractors.

FAR 52.232–33 and FAR 52.232–34

require, for each contract awarded, the

contractor to provide EFT information

to the cognizant payment office. In

addition, DFARS 204.7302 requires

contractor registration in a DoD CCR

database prior to award of a contract,

basic agreement, basic ordering

agreement, or blanket purchase

agreement, unless the award results

from a solicitation issued on or before

May 31, 1998. As part of the registration

process, contractors are required to

furnish their EFT information.

Therefore, Contractors are required to
Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 /Rules and Regulations 27683

furnish EFT information into the CCR

database, and to the cognizant payment

office for each contract awarded to

them.

This interim DFARS rule applies to

small entities that are required to

register in the DoD CCR database in

accordance with DFARS 252.204–7004,

and that are required to be paid by EFT

in accordance with FAR 52.232–33 or

FAR 52.232–34. The rule does not apply

to small entities that are exempted from

CCR or exempted from the EFT method

of payment. This rule reduces the

burden on small entities by eliminating

the requirement for DoD contractors to

furnish EFT information to the payment

office for each contract. To date, no

supporting data has been collected;

therefore, there is no available estimate

of the number of small entities that will

be subject to the rule.

The interim rule decreases

information collection requirements by

requiring the use of DFARS 252.232–

7009 instead of the FAR clauses and

their associated reporting requirements.

The new DFARS clause only applies to

contractors that are required to register

in the CCR database. The requirement to

register in the database already is

prescribed at DFARS 204.7302.

This rule has a beneficial economic

impact on small entities by eliminating

conflicting and administratively

burdensome requirements for

submission of EFT information. There

are no significant alternatives that

would have a more beneficial economic

impact on small entities and at the same

time comply with 31 U.S.C. 3332, as

amended by Subsection 31001(x) of

Public Law 104–134, that ‘‘* * * all

Federal payments to a recipient who

becomes eligible for that type of

payment * * * shall be made by

electronic funds transfer.’’

A copy of the Initial Regulatory

Flexibility Analysis may be obtained

from the address specified herein.

Comments are invited from small

businesses and other interested parties.

Comments from small entities

concerning the affected DFARS subparts

also will be considered in accordance

with 5 U.S.C. 610. Such comments must

be submitted separately and should cite

DFARS Case 98–D012.

C. Paperwork Reduction Act

The interim rule decreases the

information collection requirement

currently approved under Office of

Management and Budget (OMB) Control

Number 9000–0144. The decrease

results from the rule removing the

requirement to use the clause at FAR

52.232–33 or FAR 52.232–34, when a

contract includes the clause at DFARS

252.204–7004, Required Central

Contractor Registration, and will be paid

by EFT. OMB approved the information

collection requirement to submit EFT

information in the CCR database on

November 20, 1997, under OMB Control

Number 0704–0400, which expires on

November 30, 2000.

D. Determination To Issue an Interim

Rule

A determination has been made under

the authority of the Secretary of Defense

that urgent and compelling reasons exist

to publish this interim rule prior to

affording the public an opportunity to

comment. This action is necessary to

expeditiously eliminate conflicting and

administratively burdensome

requirements for DoD contractors.

Effective June 1, 1998, DoD contractors

are required to register in a CCR

database. The contractor payment

information required by the clauses at

FAR 52.232–33 and 52.232–34

duplicates information required for

registration in the CCR database. This

interim rule prescribes a DFARS clause

for use in place of the FAR clauses, to

eliminate requirements for duplicate

submissions of information by DoD

contractors. However, comments

received in response to the publication

of this interim rule will be considered

in formulating the final rule.

List of Subjects in 48 CFR Parts 232 and

252

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Parts 232 and 252

are amended as follows:

1. The authority citation for 48 CFR

Parts 232 and 252 continues to read as

follows:

Authority: 41 U.S.C. 421 and 48 CFR

Chapter 1.

PART 232—CONTRACT FINANCING

2. Subpart 232.11 is added to read as

follows:

Subpart 232.11—Electronic Funds

Transfer

Sec.

232.1101 Policy.

232.1103 Contract clause.

232.1101 Policy.

(a) If the payment office is not capable

of making payment by electronic funds

transfer (EFT), the payment office is

relieved of the requirement to pay by

EFT is DoD complies with 31 CFR

208.3, which requires written notice and

submittal of an implication plan to the

Department of the Treasury, Financial

Management Service.

232.1103 Contract clause.

If the solicitation or contract includes

the clause at 252.204–7004, Required

Central Contractor Registration, and

payment under the contract will be

made by electronic funds transfer, use

the clause at 252.232–7009, Payment by

Electronic Funds Transfer (CCR),

instead of the clause at FAR 52.232–33,

Mandatory Information for Electronic

Funds Transfer Payment, or the clause

at FAR 52.232–34, Optional Information

for Electronic Funds Transfer Payment.

PART 252—SOLICITAITON

PROVISIONS AND CONTRACT

CLAUSES

3. Section 252.232–7009 is added to

read as follows:

252.232–7009 Payment by Electronic

Funds Transfer (CCR).

As prescribed in 232.1103, use the

following clause:

Payment by Electronic Funds Transfer (CCR)

(JUN 1998)

(a) Method of payment. (1) All payments by

the Government under this contract shall be

made by electronic funds transfer (EFT),

except as provided in paragraph (a)(2) of (b)

of this clause. As used in this clause, the

term ‘‘EFT’’ refers to the funds transfer and

may also include the payment information

transfer.

(2) In the event the Government is unable

to release one or more payments by EFT, the

Contractor agrees to either (i) accept payment

by check or some other mutually agreeable

method of payment, or (ii) request the

Government to extend the payment due date

until such time as the Government can make

payment by EFT (but see paragraph (e) of this

clause).

(b) Alternative contractor certification. If

the Contractor certifies in writing, as part of

its registration with the Central Contractor

Registration (CCR) database that it does not

have an account with a financial institution

and does not have an authorized payment

agent, payment shall be made by check to the

remittance address contained in the CCR

database. All contractor certifications will

expire on January 1, 1999.

(c) Contractor’s EFT information. Except as

provided in paragraph (b) of this clause, the

Government shall make payment to the

Contractor using the EFT information

contained in the CCR database. In the event

that the EFT information changes, the

Contractor shall be responsible for providing

the updated information to the CCR database.

(d) Mechanisms for EFT payment. The

Government may make payment by EFT

through either an Automated Clearing House

subject to the banking laws of the United

States or the Federal Reserve Wire Transfer

System.

(e) Suspension of payment. If the

Contractor’s EFT information in the CCR
27684 Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 /Rules and Regulations

database is incorrect and the Contractor has

not certified under paragraph (b) of this

clause, the Government need not make

payment to the Contractor under this contract

until correct EFT information or certification

is entered into the CCR database; and any

invoice or contract financing request shall be

deemed not to be a proper invoice for the

purpose of prompt payment under this

contract. The prompt payment terms of the

contract regarding notice of an improper

invoice and delays in accrual of interest

penalties apply.

(f) Contractor EFT arrangements. If the

Contractor has identified multiple payment

receiving points (i.e., more than one

remittance address or EFT information set) in

the CCR database, and the Contractor has not

notified the Government of the payment

receiving point applicable to this contract,

the Government shall make payment to the

first payment receiving point (EFT

information set or remittance address as

applicable) listed in the CCR database.

(g) Liability for uncompleted or erroneous

transfers. (1) If an uncompleted or erroneous

transfer occurs because the Government

failed to use the Contractor’s EFT

information in the correct manner, the

Government remains responsible for—

(i) Making a correct payment;

(ii) Paying any prompt payment penalty

due; and

(iii) Recovering any erroneously directed

funds.

(2) If an uncompleted or erroneous transfer

occurs because the Contractor’s EFT

information was incorrect, or was revised

within 30 days of Government release of the

EFT payment transaction instruction to the

Federal Reserve System, and—

(i) If the funds are no longer under the

control of the payment office, the

Government is deemed to have made

payment and the contractor is responsible for

recovery of any erroneously directed funds;

or

(ii) If the funds remain under the control

of the payment office, the Government shall

not make payment, and the provisions of

paragraph (e) of this clause shall apply.

(h) EFT and prompt payment. A payment

shall be deemed to have been made in a

timely manner in accordance with the

prompt payment terms of this contract if, in

the EFT payment transaction instruction

released to the Federal Reserve System, the

date specified for settlement of the payment

is on or before the prompt payment due date,

provided the specified payment date is a

valid date under the rules of the Federal

Reserve System.

(i) EFT and assignment of claims. If the

Contractor assigns the proceeds of this

contract as provided for in the assignment of

claims terms of this contract, the Contractor

shall require as a condition of any such

assignment, that the assignee register in the

CCR database and be paid by EFT in

accordance with the terms of this clause. In

all respects, the requirements of this clause

shall apply to the assignee as if it were the

Contractor. EFT information that shows the

ultimate recipient of the transfer to be other

than the Contractor, in the absence of a

proper assignment of claims acceptable to the

Government, is incorrect EFT information

within the meaning of paragraph (e) of this

clause.

(j) Liability for change of EFT information

by financial agent. The Government is not

liable for errors resulting from changes to

EFT information made by the Contractor’s

financial agent.

(k) Payment information. The payment or

disbursing office shall forward to the

Contractor available payment information

that is suitable for transmission as of the date

of release of the EFT instruction to the

Federal Reserve System. The Government

may request the Contractor to designate a

desired format and method(s) for delivery of

payment information from a list of formats

and methods the payment office is capable of

executing. However, the Government does

not guarantee that any particular format or

method of delivery is available at any

particular payment office and retains the

latitude to use the format and delivery

method most convenient to the Government.

If the Contractor has certified in accordance

with paragraph (b) of this clause or if the

Government otherwise makes payment by

check in accordance with paragraph (a) of

this clause, the Government shall mail the

payment information to the remittance

address contained in the CCR database.

(End of clause)

[FR Doc. 98–13387 Filed 5–19–98; 8:45 am]

BILLING CODE 5000–04–M