4074 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 52

[FAR Case 97–011]

RIN 9000–AH73

Federal Acquisition Regulation;

Evidence of Shipment in Electronic

Data Interchange (EDI) Transactions

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council are

proposing to amend the Federal

Acquisition Regulation (FAR) to

facilitate the use of electronic data

interchange (EDI) transactions and to

streamline the payment process when

supplies are purchased free on board

(f.o.b.) destination with inspection and

acceptance at origin. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993. This is not a major

rule under 5 U.S.C. 804.

DATES: Comments should be submitted

on or before March 30, 1998 to be

considered in the formulation of a final

rule.

ADDRESSES: Interested parties should

submit written comments to: General

Services Administration, FAR

Secretariat (MVR), 1800 F Street, NW,

Room 4035, Washington, DC 20405. Email comments submitted over Internet

should be addressed to: farcase.97–

011@gsa.gov. Please cite FAR case 97–

011 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405 (202)

501–4755 for information pertaining to

status or publication schedules. For

clarification of content, contact Ms.

Linda Klein, Procurement Analyst, at

(202) 501–3775. Please cite FAR case

97–011.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends the clause

at FAR 52.247–48 to eliminate the

current barriers to full implementation

of electronic data interchange (EDI) in

certain contracts awarded on an f.o.b.

destination basis. Presently, if a contract

is awarded on an f.o.b. destination basis,

and if transportation is accomplished by

a common carrier, the contractor is

required to provide, with the invoice, a

signed copy of the commercial bill of

lading indicating the carriers receipt of

the supplies or to furnish the

information electronically as evidence

of shipment. Additionally, if

transportation is accomplished by other

than a common carrier or parcel post,

the contractor is required to provide,

with the invoice, a copy of the

appropriate delivery document showing

receipt at the destination specified in

the contract. To eliminate current

barriers to transmission of signed bills

of lading, or other required delivery

documentation through EDI, this rule

eliminates any requirement for

contractors to provide evidence of

shipment. However, contractors will be

required to retain, and to make available

to the Government for review as

necessary, the evidence of shipment

documentation for a period of 4 years

after contract completion.

B. Regulatory Flexibility Act

This proposed rule is not expected to

have a significant economic impact on

a substantial number of small entities

within the meaning of the Regulatory

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

because the rule applies to a limited

number of EDI transactions, e.g., when

supplies are purchased f.o.b.

destination, but inspection and

acceptance will be at origin. Therefore,

the rule is estimated to affect only a

small number of entities, both large and

small. For DoD, less than 1 percent (129)

of all f.o.b. destination supply contracts

over $25,000 (14,664) are likely to be

affected by this rule. Therefore, an

Initial Regulatory Flexibility Analysis

has not been performed. Comments

from small entities concerning the

affected FAR subpart will be considered

in accordance with 5 U.S.C. 610 of the

Act. Such comments must be submitted

separately and should cite 5 U.S.C. 601,

et seq. (FAR case 97–011), in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (44

U.S.C. 3501, et seq.) is deemed to apply

because the proposed rule contains

information collection requirements. It

is estimated that the revision to the FAR

clause at 52.247–48 will slightly

increase, by 45 hours, to 74,795 hours,

the annual paperwork burden associated

with FAR Part 47 and related provisions

and clauses approved by the Office of

Management and Budget (OMB) under

OMB Control Number 9000–0061.

List of Subjects in 48 CFR Part 52

Government procurement.

Dated: January 21, 1998.

Jeremy F. Olson,

Acting Director, Federal Acquisition Policy

Division.

Therefore, it is proposed that 48 CFR

Part 52 be amended as set forth below:

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

1. The authority citation for 48 CFR

Part 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

2. Section 52.247–48 is revised to read

as follows:

52.247–48 F.o.b. Destination—Evidence of

Shipment.

As prescribed in 47.305–4(c), insert

the following clause:

F.O.B. Destination—Evidence of Shipment

(Date)

(a) If this contract is awarded on a free on

board (f.o.b.) destination basis, the

Contractor—

(1) Shall not submit an invoice for payment

until the supplies covered by the invoice

have been shipped; and

(2) Shall retain, and make available to the

Government for review as necessary, the

following evidence of shipment

documentation for a period of 4 years after

completion of the contract:

(i) If transportation is accomplished by

common carrier, a signed copy of the

commercial bill of lading for the supplies

covered by the Contractor’s invoice,

indicating the carrier’s intent to ship the

supplies to the destination specified in the

contract.

(ii) If transportation is accomplished by

parcel post, a copy of the certificate of

mailing.

(iii) If transportation is accomplished by

other than common carrier or parcel post, a

copy of the delivery document showing

receipt at the destination specified in the

contract.

(b) The Contractor is not required to submit

evidence of shipment documentation with its

invoice.

(End of clause)

[FR Doc. 98–1909 Filed 1–26–98; 8:45 am]

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