29314 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

and Demographic Rank Report, and that

Puerto Rico, the U.S. Virgin Islands, and

Guam will each be considered a single

market.

(2) Effective January 1, 2000, a

commercial broadcast television

station’s market, unless amended

pursuant to § 76.59, shall be defined as

its Designated Market Area (DMA) as

determined by Nielsen Media Research

and published in its DMA Market and

Demographic Rank Report or any

successor publication, as noted below.

(3) A cable system’s television

market(s) shall be the one or more ADI

markets in which the communities it

serves are located until January 1, 2000,

and the one or more DMA markets in

which the communities it serves are

located thereafter.

(4) In addition, the county in which

a station’s community of license is

located will be considered within its

market.

Note to paragraph (e): For the 1996 mustcarry/retransimission consent election, the

ADI assignments specified in the 1991–1992

Television ADI Market Guide, available from

the Arbitron Ratings Co., 9705 Patuxent

Woods Drive, Columbia, MD, will apply. For

the 1999 election, which becomes effective

on January 1, 2000, DMA assignments

specified in the 1997–98 DMA Market and

Demographic Rank Report, available from

Nielsen Media Research, 299 Park Avenue,

New York, NY, shall be used. The applicable

DMA list for the 2002 election will be the

2000–2001 list, etc.

* * * * *

[FR Doc. 96–14571 Filed 6–7–96; 8:45 am]

BILLING CODE 6712–01–P

ENVIRONMENTAL PROTECTION

AGENCY

48 CFR Parts 1501, 1509, 1510, 1515,

1532, 1552 and 1553

[FRL–5516–4]

Acquisition Regulation; Monthly

Progress Reports; Submission of

Invoices

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: This document revises the

EPA Acquisition Regulation (EPAAR)

contract clauses for monthly progress

reports, submission of invoices, and

other related information. Authority for

two internal EPA reviews is also

redelegated.

EFFECTIVE DATE: June 25, 1996.

ADDRESSES: Environmental Protection

Agency, Office of Acquisition

Management (3802F), 401 M Street SW.,

Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT:

Larry Wyborski, Telephone: (202) 260–

6482.

SUPPLEMENTARY INFORMATION:

I. Background Information

The proposed rule was published in

the Federal Register (60 FR 51964–

51968) on October 4, 1995, providing for

a 60 day comment period.

Interested parties were afforded the

opportunity to participate in the making

of this rule. The following is a summary

of each comment and the Agency

disposition of these comments.

1. Comment: Paragraphs (c)(1) and (2)

of the Submission of Invoices clause

references invoice preparation

instructions ‘‘. . . identified as a

separate attachment in Section J . . .’’

Perhaps the intent of your proposed

provision is to reference the current

EPA Form 1900 or 1900–34A or some

similar document, in which case we,

and other EPA contractors, are familiar

with its requirements. On the other

hand, if you have another document in

mind we would be particularly

interested in its proposed contents.

Response: The reference is to invoice

preparation instructions under each

contract, which will convey similar

information now conveyed in the EPA

Form 1900–34 and 1900–34A.

Contracting Officers will be able to

devise the instructions to fit the specific

circumstances of the acquisition. The

EPA Form 1900–34 and 1900–34A are

obsolete. See items 16 and 17 of this

rule which delete these forms from use

by EPA.

2. Comment: Submission of Invoices

clause, paragraph (c)(1) and the Monthly

Progress Report clause, paragraph (d)(2)

call for amounts claimed ‘‘for the

contract total.’’ It is not clear what is

meant by that phrase particularly in

light of the requirements of the

proposed Monthly Progress Report

provision. If you mean the contract

period, that presents no additional

burden. If you mean the ‘‘cumulative

contract life’’ (your expression from the

Monthly Progress Report provision), this

would be more difficult as your cost

accounting system does not currently

add contract year information together.

Response: ‘‘Contract total’’ refers to

cumulative contract life. This is a

change from the prior Agency

requirements which will improve the

Agency’s ability to assess cost

reasonableness.

3. Comment: The Submission of

Invoices clause, paragraph (c)(3) calls

for subcontract amounts to be ‘‘further

detailed in a supporting schedule

showing major cost elements for each

subcontract.’’ This raises the potential

issue of proprietary information on costplus fixed-fee (CPFF) subcontracts

where subcontractors may be unwilling

to provide fully disclosed cost detail to

prime contractors. The Agency would

have to determine how they would like

to have subcontractors to provide that

detail if it was still requested. For

example, subcontractors could provide

in sealed envelopes the proprietary

backup to their invoices which contain

the desired information and primes

could then enclose all the envelopes

with their invoices. This would be

bulky and postage costs would increase

as a result.

Response: The ‘‘Subcontracts’’ clause

of the Federal Acquisition Regulation

makes it the responsibility of

contractors to obtain information that

ensures subcontractor costs are

reasonable, if such a requirement is

established in other contract provisions.

The Agency suggests that a prime

contractor enter into confidentiality

agreements with subcontractors to

ensure that they provide the necessary

data, if such data is considered

proprietary.

4. Comment: Monthly Progress

Report, paragraph (c), calls for the prime

contractor to maintain the Contracting

Officer’s list of pending actions.

Response: Paragraph (c) is not a

requirement to maintain the Contracting

Officer’s ‘‘list.’’ It is a requirement for

contractors to specify contractor

requests awaiting Contracting Officer

authorization.

5. Comment: Several requirements for

information have the potential for being

quickly outdated and thus may lose

whatever value they may be expected to

offer.

Response: If the information

requested is updated monthly, as

required by the monthly progress report,

the Agency believes it will be useful in

making cost reasonableness

determinations.

6. Comment: Paragraph (d)(4) of the

Monthly Progress Report clause calls for

the tracking of costs against contract

‘‘ceilings’’. Many of the items listed are

not normally the subject of contract

ceilings. It is not clear if your provision

literally means ceilings or if you mean

the amounts proposed in each of those

areas as part of the total estimated cost.

Further, the concept of ‘‘remaining

amounts’’ has little meaning unless you

are referring to contract ceilings. Lastly,

reporting costs by individual contractor

is not within the capability of the

invoicing module of our current cost

accounting and would thus take a

modification to that system or manual

invoice preparation.
Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29315

As stated, the provision means

ceilings. The provision does not refer to

part of the estimated costs. Adjustments

to internal contractor systems may be

necessary to meet this requirement.

7. Comment: The new information

requirements would add considerable

time and costs to the preparation of

invoices and monthly progress reports.

Response: The procedures and

information requested were formulated

with the realization that they may entail

additional indirect costs to the

contractor which will be passed along to

the Agency. The Agency believes that

such costs will be outweighed by the

benefits of enhancing EPA’s ability to

determine whether contract costs are

reasonable for payment purposes.

8. Comment: While we understand

the desire of the Agency to obtain

additional information under its

contracts through invoices and monthly

reports, we believe the proposed

changes are overreaching and do not

reflect the FAR proscription to obtain

the minimum technical data necessary

to manage the contract. The rule

increases the federally-imposed

administrative burden on contractors.

Response: The FAR policy

proscription refers to technical data,

such as that which is scientific in

nature. It does not refer to information

incidental to contract administration. It

is the Agency’s responsibility to

determine cost reasonableness, based on

a standard of what a prudent person

would incur in the conduct of

competitive business. If an initial

review of the facts results in the

challenge of specific costs by the

Government, the burden of proof is on

the contractor to establish that such a

cost is reasonable. This final rule will

ensure that supporting documentation is

provided in cases where a prudent

person could not otherwise make a cost

reasonableness determination.

9. Comment: When a final decision is

made to disallow costs, a copy of the

EPA Form 1900–68 should also be sent

to the contractor’s cognizant audit

office.

Response: A copy of all completed

EPA 1900–68 Forms will be provided to

the applicable Cost Advisory Office, per

item number 6 of the form.

10. Comment: EPA is acting

inconsistently with Paperwork

Reduction Act requirements, as codified

in 5 CFR 1320.

Response: This action is consistent

with the Paperwork Reduction Act.

There is an existing clearance for this

information collection requirement,

previously approved OMB control

number 2030–0005. The Agency

submitted an amended information

request for the data in this rule, which

OMB has approved. Also see item III. for

information required by the Paperwork

Reduction Act.

11. Comment: EPA should accept

OMB policy (i.e., OMB Circular A–133)

which requires agencies to rely upon

contractors/grantees to review approved

systems to account for federal funds,

rather than transaction reviews

performed by the funding agency.

Response: The OMB Circular also

states that a Federal agency shall make

any additional reviews necessary to

carry out responsibilities under Federal

law and regulation. As stated in

response to 8., it is the Agency’s

responsibility to determine cost

reasonableness, based on a standard of

what a prudent person would incur in

the conduct of competitive business. If

an initial review of the facts results in

the challenge of specific costs by the

Government, the burden of proof is on

the contractor to establish that such a

cost is reasonable. This rule will ensure

that supporting documentation is

provided in order to make a cost

reasonableness determination.

12. Comment: EPA has not justified

the substantially increased effort

required under the proposed rule. The

level of detail specified in the new

Monthly Progress Report clause may not

be readily available to many contractors.

The revised clause will require the

expenditure of considerable time and

money at a time when Government

procurement is moving toward

increased simplification. The EPA

should satisfy itself that the perceived

benefits of the new Monthly Progress

report clause will justify the costs.

Response: Reference is made to

responses to comments 7. and 8. Also,

one EPA contractor commented that

none of the information requested is

impossible for prime contractors to

provide to the Agency. A second EPA

contractor stated that the changes

appear to be very useful in enhancing

EPA’s ability to monitor the financial

performance of contractors. The Agency

received no comments from contractors

stating that the requested information

would be unavailable to them. Lastly,

the Agency considered the cost benefits

of the rule, prior to determining that any

additional costs to the Government

would be more than offset by the

benefits obtained from necessary data

upon which to make cost

reasonableness determinations.

13. Comment: We disagree with the

statement that the annual burden of

information collection is not estimated

to change.

Response: The information collection

burden is based on current contractor

preparation time for the Monthly

Progress Report, assuming a relatively

large number of contracts and using

EPA contractor processing time on an

average of work assignments for the

month. The figure of 43 hours uses the

high range of the burden estimates

provided by contractors. Therefore, the

43 hours is considered a reasonable

basis for the burden estimate. See Item

III. for details on why the burden is not

estimated to change.

14. Comment: Several comments

recommended specific revisions to the

language of EPAAR 1552.210–72,

Monthly Progress Report, and EPAAR

1552.232–70, Submission of Invoices.

Response: As a result of these

comments, changes were made to the

proposed language in Monthly Progress

Report clause. Specifically, paragraphs

(a), (d)(6) and (e)(3)(v) were revised, and

paragraph (e)(6) was added.

II. Executive Order 12866

This is not a significant regulatory

action under Executive Order 12866;

therefore, no review is required at the

Office of Information and Regulatory

Affairs within OMB.

III. Paperwork Reduction Act

The Office of Management and Budget

(OMB) has approved the information

collection and record keeping

requirements contained in this proposed

rule under the provisions of the

Paperwork Reduction Act, 44 U.S.C.

3501 et seq and has assigned OMB

control number 2030–0005.

Agencies are required to monitor costreimbursement, time and material and

labor hour contracts in terms of

financial and technical efficiency. The

Environmental Protection Agency

Acquisition Regulation (EPAAR)

prescribes use of the contract clause

entitled ‘‘Monthly Progress Report’’ to

obtain the information necessary to

monitor these contracts. The responses

to the collection of information are

required for contractors to receive

payment, in accordance with the

EPAAR.

Progress reports contain confidential

business information and are protected

from release in accordance with 40 CFR

Part 2.

This rule is not estimated to change

the annual burden of information

collection and record keeping

requirements, which is estimated to be

43 hours per response. Respondent

burden is based on the current

estimated response burden that was

modified to consider: (1) decreased

burden due to familiarity with the

requirement, improved computer

monitoring techniques and the use of
29316 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

word processing in lieu of typing (net

effect—decrease information gathering

time from 28.25 to 25.25 hours per

month); and (2) increased burden due to

a requirement for more reporting data

(net effect—increase information

processing, compilation and review

time from 14.75 to 17.75 hours per

month)).

Collection activity Hours per

month Cost

1. Gather Information 25.25 $2,220.00

2. Compile/Process

Information ............. 17.75 710.00

Total ............... 43 2,930.00

In addition, Capital costs per

respondent are estimated at $180.00 per

year, based on monthly reproduction

and postage costs of $15.00 per

respondent (12 months x $15.00 =

$180.00 per year).

Contractors are reimbursed for costs

under the applicable contracts.

In most instances, it is a contractor’s

project manager who manages the effort

under the contract and prepares the

progress report. EPA’s Cost Advisory

and Financial Analysis Division

estimates the loaded hourly rate for an

assistant project manager to be $80.00

per hour and the loaded hourly rate for

a data entry clerk to be $40.00 per hour.

These figures are based on Agency

contracts.

EPA currently has an estimated 650

contracts which require monthly

progress reports. Based on this estimate,

there would be 7,800 responses per year

(650 respondents x 12 monthly

responses = 7,800).

Burden means the total time, effort, or

financial resources expended by persons

to generate, maintain, retain or disclose

or provide information to or for a

Federal agency. This includes the time

to review instructions; develop, acquire,

install, and utilize technology and

systems for the purpose of collecting,

validating, and verifying information,

processing and maintaining

information, and disclosing and

providing information; adjust the

existing ways to comply with any

previously applicable instructions and

requirements; train personnel to be able

to respond to a collection of

information; and transmit or otherwise

disclose the information.

An Agency may not conduct or

sponsor, and a person is not required to

respond to a collection of information

unless it displays a valid OMB control

number. The OMB control numbers for

EPA’s regulations are listed in 40 CFR

Part 9 and 48 CFR Chapter 15. EPA is

amending the table in Subpart 1501.3,

48 CFR Chapter 15 of currently

approved ICR control numbers issued

by OMB for various regulations to list

the information requirements contained

in this final rule.

Send comments on the Agency’s need

for this information, the accuracy of the

provided burden estimates, and any

suggested methods for minimizing

respondent burden, including through

the use of automated collection

techniques, to the Director, OPPE

Regulatory Information Division: U. S.

Environmental Protection Agency

(2136); 401 M St., S.W.; Washington, DC

20460; and to the Office of Information

and Regulatory Affairs, Office of

Management and Budget, 725 17th St.,

N. W., Washington DC 20503, marked

‘‘Attention: Desk Officer for EPA.’’

Include the ICR number in any

correspondence.

IV. Regulatory Flexibility Act

This rule is not expected to have a

significant impact on a substantial

number of small entities within the

meaning of the Regulatory Flexibility

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

invoicing procedures, contractors

submit payment requests to the

Government based on known costs

incurred. Compliance with this

requirement will involve minimal cost

or effort for any entity, large or small.

V. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA) P.L. 104–

4, establishes requirements for Federal

agencies to assess their regulatory

actions on State, local, and tribal

governments and the private sector.

EPA has determined that this rule

does not contain a Federal mandate that

may result in expenditures of $100

million or more for State, local, and

tribal governments, in the aggregate, or

the private sector in any one year.

Private sector costs for this action relate

to paperwork requirements and

associated expenditures that are far

below the level established for UMRA

applicability. Thus, the rule is not

subject to the requirements of sections

202 and 205 of the UMRA.

VI. Regulated Entities

EPA contractors are entities

potentially regulated by this action.

Specifically, those contractors who have

cost-reimbursement type contracts with

EPA are likely to be affected.

Category Regulated entities

Industry ..................... EPA contractors.

Questions regarding the applicability

of this action to a particular entity,

should be directed to the person listed

in the preceding FOR FURTHER

INFORMATION CONTACT section.

List of Subjects in 48 CFR Parts 1501,

1509, 1510, 1515, 1532, 1552 and 1553

Government procurement.

For the reasons set forth in the

preamble, Chapter 15 of Title 48 Code

of Federal Regulations is amended as

follows:

1. The authority citation for 1501,

1509, 1510, 1515, 1532, 1552 and 1553

continues to read as follows:

Authority: Sec. 205(c), 63 Stat. 390 as

amended, 40 U.S.C. 486(c).

PART 1501—[AMENDED]

1501.37 [Amended]

2. Section 1501.370 is amended by

removing the text ‘‘1510.011–70 through

1510.011–74’’ and adding in its place

‘‘1510.011–70 and 1510.011–72’’ and by

removing the text ‘‘1552.210–71 through

1552.210–73’’ and adding in its place

‘‘1552.210–72.’’

PART 1509—[AMENDED]

1509.503 [Amended]

3. Section 1509.503 is amended by

removing the words ‘‘Assistant

Administrator for Administration and

Resources Management’’ and adding in

its place the words ‘‘Head of the

Contracting Activity.’’

PART 1510—[AMENDED]

1510.011–71 [Removed]

4. Section 1510.011–71 is removed

and reserved.

5. Section 1510.011–72 is revised to

read as follows:

1510.011–72 Monthly progress report.

Contracting Officers shall insert a

contract clause substantially the same as

the clause at 1552.210–72 when

monthly progress reports are required.

1510.011–73 [Removed]

6. Section 1510.011–73 is removed

and reserved.

1510.011–74 [Removed]

7. Section 1510.011–74 is removed

and reserved.

PART 1515—[AMENDED]

1515.608 [Amended]

8. Section 1515.608 is amended by

removing the word ‘‘CCO’’ in paragraph

(e) and adding in its place the words

‘‘Competition Advocate.’’

PART 1532—[AMENDED]

9. Section 1532.170 is amended by

revising paragraph (b) to read as follows

and to remove paragraph (c):
Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29317

1532.170 Forms.

* * * * *

(b) EPA Form 1900–68, Notice of

Contract Costs Suspended and/or

Disallowed, at 1553.232–75, shall be

inserted in all cost-reimbursement type

and fixed-rate type contracts.

10. Section 1532.908 is revised to read

as follows:

1532.908 Contract clauses.

The Contracting Officer shall insert a

clause substantially the same as that at

1552.232–70 in all solicitations and

contracts for cost reimbursable

acquisitions. If a fixed-rate type contract

is contemplated, the Contracting Officer

shall use the clause with its Alternate I.

PART 1552—[AMENDED]

1552.210–71 [Removed]

11. Section 1552.210–71 is removed

and reserved.

12. Section 1552.210–72 is revised to

read as follows:

1552.210–72 Monthly Progress Report.

As prescribed in 1510.011–72, insert

the following clause:

Monthly Progress Report (Jun 1996)

(a) The Contractor shall furnish lll

copies of the combined monthly technical

and financial progress report stating the

progress made, including the percentage of

the project completed, and a description of

the work accomplished to support the cost.

If the work is ordered using work

assignments or delivery orders, include the

estimated percentage of task completed

during the reporting period for each work

assignment or delivery order.

(b) Specific discussions shall include

difficulties encountered and remedial action

taken during the reporting period, and

anticipated activity with a schedule of

deliverables for the subsequent reporting

period.

(c) The Contractor shall provide a list of

outstanding actions awaiting Contracting

Officer authorization, noted with the

corresponding work assignment, such as

subcontractor/consultant consents, overtime

approvals, and work plan approvals.

(d) The report shall specify financial status

at the contract level as follows:

(1) For the current reporting period,

display the amount claimed.

(2) For the cumulative period and the

cumulative contract life display: the amount

obligated, amount originally invoiced,

amount paid, amount suspended, amount

disallowed, and remaining approved amount.

The remaining approved amount is defined

as the total obligated amount, less the total

amount originally invoiced, plus total

amount disallowed.

(3) Labor hours.

(i) A list of employees, their labor

categories, and the numbers of hours worked

for the reporting period.

(ii) For the current reporting period,

display the expended direct labor hours and

costs broken out by EPA contract labor hour

category for the prime contractor and each

subcontractor and consultant.

(iii) For the cumulative contract period and

the cumulative contract life display: the

negotiated, expended and remaining direct

labor hours and costs broken out by EPA

contract labor hour category for the prime

contractor, and each subcontractor and

consultant.

(iv) Display the estimated direct labor

hours and costs to be expended during the

next reporting period.

(4) Display the current dollar ceilings in

the contract, net amount invoiced, and

remaining amounts for the following

categories: Direct labor hours, total estimated

cost, award fee pool (if applicable),

subcontracts by individual subcontractor,

travel, program management, and Other

Direct Costs (ODCs).

(5) Unbilled allowable costs. Display the

total costs incurred but unbilled for the

current reporting period and cumulative for

the contract.

(6) Average cost of direct labor. Compare

the actual average cost per hour to date with

the average cost per hour of the approved

work plans for the current contract period.

(e) The report shall specify financial status

at the work assignment or delivery order

level as follows:

(1) For the current period, display the

amount claimed.

(2) For the cumulative period display:

amount shown on workplan, or latest work

assignment/delivery order amendment

amount (whichever is later); amount

currently claimed; amount paid; amount

suspended; amount disallowed; and

remaining approved amount. The remaining

approved amount is defined as: the workplan

amount or latest work assignment or delivery

order amount (whichever is later), less total

amounts originally invoiced, plus total

amount disallowed.

(3) Labor hours.

(i) A list of employees, their labor

categories, and the number of hours worked

for the reporting period.

(ii) For the current reporting period,

display the expended direct labor hours and

costs broken out by EPA contract labor hour

category for the prime contractor and each

subcontractor and consultant.

(iii) For the current reporting period,

cumulative contract period, and the

cumulative contract life display: the

negotiated, expended and remaining direct

labor hours and costs broken out by EPA

contract labor hour category for the prime

contractor and each subcontractor and

consultant.

(iv) Display the estimated direct labor

hours and costs to be expended during the

next reporting period.

(v) Display the estimates of remaining

direct labor hours and costs required to

complete the work assignment or delivery

order.

(4) Unbilled allowable costs. Display the

total costs incurred but unbilled for the

current reporting period and cumulative for

the work assignment.

(5) Average cost of direct labor. Display the

actual average cost per hour with the cost per

hour estimated in the workplan.

(6) A list of deliverables for each work

assignment or delivery order during the

reporting period.

(f) This submission does not change the

notification requirements of the ‘‘Limitation

of Cost’’ or ‘‘Limitation of Funds’’ clauses

requiring separate written notice to the

Contracting Officer.

(g) The reports shall be submitted to the

following addresses on or before the lll

of each month following the first complete

reporting period of the contract. See EPAAR

1552.232–70, Submission of Invoices,

paragraph (e), for details on the timing of

submittals. Distribute reports as follows:

No. of copies Addressee

llllll ............. Project Officer.

llllll ............. Contracting Officer.

1552.210–73 [Removed]

13. Section 1552.210–73 is removed

and reserved.

1552.210–74 [Removed]

14. Section 1552.210–74 is removed

and reserved.

15. Section 1552.232–70 is revised to

read as follows:

1552.232–70 Submission of invoices.

As prescribed in 1532.908, insert the

following clause:

Submission of Invoices (Jun 1996)

In order to be considered properly

submitted, an invoice or request for contract

financing payment must meet the following

contract requirements in addition to the

requirements of FAR 32.905:

(a) Unless otherwise specified in the

contract, an invoice or request for contract

financing payment shall be submitted as an

original and five copies. The Contractor shall

submit the invoice or request for contract

financing payment to the following offices/

individuals designated in the contract: the

original and two copies to the Accounting

Operations Office shown in Block lll on

the cover of the contract; two copies to the

Project Officer (the Project Officer may direct

one of these copies to a separate address);

and one copy to the Contracting Officer.

(b) The Contractor shall prepare its invoice

or request for contract financing payment on

the prescribed Government forms. Standard

Forms Number 1034, Public Voucher for

Purchases and Services other than Personal,

shall be used by contractors to show the

amount claimed for reimbursement. Standard

Form 1035, Public Voucher for Purchases

and Services other than Personal—

Continuation Sheet, shall be used to furnish

the necessary supporting detail or additional

information required by the Contracting

Officer. The Contractor may submit selfdesigned forms which contain the required

information.

(c)(1) The Contractor shall prepare a

contract level invoice or request for contract

financing payment in accordance with the

invoice preparation instructions identified as

a separate attachment in Section J of the

contract. If contract work is authorized by
29318 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

individual work assignments, the invoice or

request for contract financing payment shall

also include a summary of the current and

cumulative amounts claimed by cost element

for each work assignment and for the contract

total, as well as any supporting data for each

work assignment as identified in the

instructions.

(2) The invoice or request for contract

financing payment shall include current and

cumulative charges by major cost element

such as direct labor, overhead, travel,

equipment, and other direct costs. For

current costs, each major cost element shall

include the appropriate supporting schedule

identified in the invoice preparation

instructions. Cumulative charges represent

the net sum of current charges by cost

element for the contract period.

(3) The charges for subcontracts shall be

further detailed in a supporting schedule

showing the major cost elements for each

subcontract. The degree of detail for any

subcontract exceeding $5,000 is to be the

same as that set forth under (c)(2).

(4) The charges for consultants shall be

further detailed in the supporting schedule

showing the major cost elements of each

consultant. For current costs, each major cost

element of the consulting agreement shall

also include the supporting schedule

identified in the invoice preparation

instructions.

(d) Invoices or requests for contract

financing payment must clearly indicate the

period of performance for which payment is

requested. Separate invoices or requests for

contract financing payment are required for

charges applicable to the basic contract and

each option period.

(e)(1) Notwithstanding the provisions of

the clause of this contract at FAR 52.216–7,

Allowable Cost and Payment, invoices or

requests for contract financing payment shall

be submitted once per month unless there

has been a demonstrated need and

Contracting Officer approval for more

frequent billings. When submitted on a

monthly basis, the period covered by

invoices or requests for contractor financing

payments shall be the same as the period for

monthly progress reports required under this

contract.

(2) If the Contracting Officer allows

submissions more frequently than monthly,

one submittal each month shall have the

same ending period of performance as the

monthly progress report.

(3) Where cumulative amounts on the

monthly progress report differ from the

aggregate amounts claimed in the invoice(s)

or request(s) for contract financing payments

covering the same period, the contractor shall

provide a reconciliation of the difference as

part of the payment request. Alternate I (JUN

1996). If used in a fixed-rate type contract,

substitute the following paragraphs (c)(1) and

(2) for paragraphs (c)(1) and (2) of the basic

clause:

(c)(1) The Contractor shall prepare a

contract level invoice or request for contract

financing payment in accordance with the

invoice preparation instructions identified as

a separate attachment in Section J of the

contract. If contract work is authorized by

individual delivery orders, the invoice or

request for contract financing payment shall

also include a summary of the current and

cumulative amounts claimed by cost element

for each delivery order and for the contract

total, as well as any supporting data for each

delivery order as identified in the

instructions.

(2) The invoice or request for contract

financing payment that employs a fixed rate

feature shall include current and cumulative

charges by contract labor category and by

other major cost elements such as travel,

equipment, and other direct costs. For

current costs, each cost element shall include

the appropriate supporting schedules

identified in the invoice preparation

instructions.

PART 1553—[AMENDED]

16. Section 1553.232–75 is revised to

read as follows:

1553.232–75 EPA Form 1900–68, Notice of

Contract Costs Suspended and/or

Disallowed.

As prescribed in 1532.170(b), the

Contracting Officer shall insert EPA

Form 1900–68 in all cost-reimbursement

type and fixed-rate type contracts.

1553.232–76 [Removed]

17. Section 1553.232–76 is removed

and reserved.

Dated: May 28, 1996.

Betty L. Bailey,

Director Office of Acquisition.

Note.—The following appendix will not

appear in the Code of Federal Regulations.

Appendix—EPA Form 1900–68, Notice of

Contract Costs Suspended or Disallowed.

BILLING CODE 6560–50–P
Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29319
29320 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

[FR Doc. 96–14463 Filed 6–7–96; 8:45 am]

BILLING CODE 6560–50–C