[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Rules and Regulations]
[Pages 29314-29320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14463]



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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.

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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 cost-plus 
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.

[[Page 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 cost-reimbursement, 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

[[Page 29316]]

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)).

------------------------------------------------------------------------
                                                    Hours per           
                Collection activity                   month       Cost  
------------------------------------------------------------------------
1. Gather Information.............................      25.25  $2,220.00
2. Compile/Process Information....................      17.75     710.00
      Total.......................................      43      2,930.00
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    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.

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                 Category                        Regulated entities     
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Industry..................................  EPA contractors.            
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    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):

[[Page 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 ______ 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 ______ 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         
------------------------------------------------------------------------
____________..............................  Project Officer.            
____________..............................  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 ______ 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 self-designed 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

[[Page 29318]]

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.

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