[Federal Register Volume 60, Number 45 (Wednesday, March 8, 1995)]
[Notices]
[Pages 12746-12747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5631]



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DEPARTMENT OF DEFENSE

General Services Administration

National Aeronautics and Space Administration

[OMB Control No. 9000-0102]


Clearance Request for Prompt Payment

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice of request for an extension to an existing OMB clearance 
(9000-0102).

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SUMMARY: Under the provisions of the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501), the Federal Acquisition Regulation (FAR) Secretariat 
has submitted to the Office of Management and Budget (OMB) a request to 
review and approve an extension of a currently approved information 
collection requirement concerning Prompt Payment.

FOR FURTHER INFORMATION CONTACT: Beverly Fayson, Office of Federal 
Acquisition Policy, GSA (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Purpose

    Part 32 of the Federal Acquisition Regulation (FAR) and the clause 
at FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, 
require that contractors under fixed-price construction contracts 
certify, for every progress payment request, that payments to 
subcontractors/suppliers have been made from previous payments received 
under the contract and timely payments will be made from the proceeds 
of the payment covered by the certification, and that this payment 
request does not include any amount which the contractor intends to 
withhold from a subcontractor/supplier. Part 32 of the FAR and the 
clause at 52.232-27, Prompt Payment for Construction Contracts, further 
require that contractors on construction contracts:
    (a) Notify subcontractors/suppliers of any amounts to be withheld 
and furnish a copy of the notification to the contracting officer;
    (b) Pay interest to subcontractors/suppliers if payment is not made 
by 7 days after receipt of payment from the Government or within 7 days 
after correction of previously identified deficiencies;
    (c) Pay interest to the Government if amounts are withheld from 
subcontractors/suppliers after the Government has paid the contractor 
the amounts subsequently withheld, or if the Government has 
inadvertently paid the contractor for nonconforming performance; and
    (d) Include a payment clause in each subcontract which obligates 
the contractor to pay the subcontractor for satisfactory performance 
under its subcontract not later than 7 days after such amounts are paid 
to the contractor, include an interest penalty clause which obligates 
the contractor to pay the subcontractor an interest penalty if payments 
are not made in a timely manner, and include a clause requiring each 
subcontractor to include these clauses in each of its subcontracts and 
to require each of its subcontractors to include similar clauses in 
their subcontracts.
    These requirements are imposed by Pub. L. 100-496, the Prompt 
Payment Act Amendments of 1988.
    Contracting officers will be notified if the contractor withholds 
amounts from subcontractors/suppliers after the Government has already 
paid the contractor the amounts withheld. The contracting officer must 
then charge the contractor interest on the amounts withheld from 
subcontractors/suppliers. Federal agencies could not comply with the 
requirements of the law if this information were not collected.

B. Annual Reporting Burden

    Public reporting burden for this collection of information is 
estimated to average .33 hours per response, including the time for 
reviewing instructions, searching, existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to General Services 
Administration, FAR Secretariat, 18th & F Streets, NW, Room 4037, 
Washington, DC 20405, and to the FAR Desk Officer, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503.
    The annual reporting burden is estimated as follows: Respondents, 
4,000; responses per respondent, 3; total annual responses, 12,000; 
preparation [[Page 12747]] hours per response, .33; and total response 
burden hours, 4,000.

C. Annual Recordkeeping Burden

    The annual recordkeeping burden is estimated as follows: 
Recordkeepers, 20,000; hours per recordkeeper, 18; and total 
recordkeeping burden hours, 360,000.

Obtaining Copies of Proposals

    Requester may obtain copies of OMB applications or justifications 
from the General Services Administration, FAR Secretariat (VRS), Room 
4037, Washington, DC 20405, telephone (202) 501-4755. Please cite OMB 
Control No. 9000-0102, Prompt Payment, in all correspondence.

    Dated: March 2, 1995.
Beverly Fayson,
FAR Secretariat.
[FR Doc. 95-5631 Filed 3-7-95; 8:45 am]
BILLING CODE 6820-34-M