82 FR 43511 - NASA Federal Acquisition Regulation Supplement: Revised Voucher and Invoice Submission & Payment Process

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 82, Issue 179 (September 18, 2017)

Page Range		43511-43513
FR Document		2017-19542

NASA is proposing to amend the NASA Federal Acquisition Regulation Supplement (NFS) to implement revisions to the voucher and invoice submittal and payment process. These revisions are necessary in order for NASA to comply with the Office of Management and Budget (OMB) issued Memorandum M-15-19, which directed federal agencies to transition to electronic invoicing for appropriate federal procurements by the end of fiscal year 2018.

Federal Register, Volume 82 Issue 179 (Monday, September 18, 2017)

[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Proposed Rules]
[Pages 43511-43513]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19542]



[[Page 43511]]

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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1816, 1832, and 1852

[NFS Case 2017-N014]
RIN 2700-AE39


NASA Federal Acquisition Regulation Supplement: Revised Voucher 
and Invoice Submission & Payment Process

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.

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SUMMARY: NASA is proposing to amend the NASA Federal Acquisition 
Regulation Supplement (NFS) to implement revisions to the voucher and 
invoice submittal and payment process. These revisions are necessary in 
order for NASA to comply with the Office of Management and Budget (OMB) 
issued Memorandum M-15-19, which directed federal agencies to 
transition to electronic invoicing for appropriate federal procurements 
by the end of fiscal year 2018.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before November 17, 2017, to be 
considered in the formation of the final rule.

ADDRESSES: Submit comments identified by NFS Case 2017-N014, using any 
of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``NFS Case 2017-N014'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``NFS Case 
2017-N014.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``NFS Case 2017-N014'' on your attached document.
    [cir] Email: [email protected]. Include NFS Case 2017-N014 in 
the subject line of the message.
    [cir] Fax: (202) 358-3082.
    [cir] Mail: National Aeronautics and Space Administration, 
Headquarters, Office of Procurement, Contract and Grant Policy 
Division, Attn: John J. L[oacute]pez, LP-011, 300 E. Street SW., 
Washington, DC 20546-0001.

FOR FURTHER INFORMATION CONTACT: Mr. John J. Lopez, NASA HQ, Office of 
Procurement, Contract and Grant Policy Division, LP-011, 300 E Street 
SW., Washington, DC 20456-0001. Telephone 202-358-3740; facsimile 202-
358-3082.

SUPPLEMENTARY INFORMATION: 

I. Background

    NASA is proposing to revise the NFS to implement revisions to the 
voucher submittal and payment process. These revisions are necessary in 
order for NASA to comply with the Office of Management and Budget (OMB) 
issued Memorandum M-15-19, which directed federal agencies to 
transition to electronic invoicing for appropriate federal procurements 
by the end of fiscal year 2018. In Fiscal Year 2016, NASA revised their 
voucher submission and payment process to electronically process cost 
type vouchers under cost-reimbursement type contracts. As part of 
NASA's goal to have all contract payments processed electronically by 
2018, this proposed rule revises NASA's submission and payment process 
to have invoices for fixed price contracts submitted electronically.

II. Discussion

    Sections of the NFS are being revised to implement changes to 
NASA's voucher and invoice submission and payment process. 
Specifically, NASA is proposing the following changes:
     Revise the clause prescription at 1816.506-70(b) and 
associated clause at 1852.216-80(i) to require contractors to submit 
task order progress reports for all contract types.
     Revise clause prescription at 1832.908-70 to include 
invoices.
     Add alternate clause at 1852.232-80(i).
     Revise clause at 1852.232-80(c)(2) to list relevant back-
up documentation required to be submitted with invoices and fee 
vouchers in order for the contracting officers to review and approve 
them.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    NASA does not expect this rulemaking 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 
guidance will not create additional burden to the contractor but rather 
the rulemaking is intended to update the current voucher and invoice 
submission process at NASA resulting in fewer voucher/invoice 
rejections, rework, and payment delays. However, an initial regulatory 
flexibility analysis has been performed and is summarized as follows:
    NASA is proposing to revise the NFS to implement revisions to the 
voucher and invoice submittal and payment process. These revisions are 
necessary in order for NASA to comply with Office of Management and 
Budget (OMB) Memorandum M-15-19, which directed federal agencies to 
transition to electronic invoicing for appropriate federal procurements 
by the end of fiscal year 2018.
    The objective of this rulemaking is to remove the outdated NFS 
payment clause and associated prescription relative to the NASA voucher 
and invoice submittal and payment process and replace with a new clause 
that will revamp NASA's voucher and invoice submission and payment 
process to ensure the continued prompt payment to its suppliers. The 
revision will also minimize cost voucher and invoice submission and 
payment delays to NASA suppliers as well the potential accrual of 
Government interest payments to contractors.
    This proposed rule would apply to contractor requests for payment 
under all contract types. An analysis of data in the Federal 
Procurement Data System (FPDS) revealed that cost reimbursement and 
fixed priced contracts are primarily awarded to small businesses. FPDS 
data compiled over the past three fiscal years (FY2014 through FY2016) 
showed an average of 76,675 NASA contract actions, of which 45,011 
(approximately 59%) were awarded to small businesses. However, there is 
no significant economic or administrative cost impact to small or large 
businesses because fee vouchers and invoices previously processed 
manually will be processed electronically. NASA anticipates that the 
rulemaking will have a positive benefit in the way of fewer voucher 
rejections, rework, and payment delays. In FY16, NASA processed 
approximately 55,000 vendor payment requests (invoice/voucher), which 
are

[[Page 43512]]

currently received by various means (70% by email, 15% by mail, 2% by 
fax, 13% by an electronic secure file transfer). NASA's current payment 
request process for fee vouchers and invoices requires manual 
intervention at almost every step in the process. Manual intervention 
decreases speed and accuracy and adds to the cost per invoice/voucher. 
This rulemaking will further automate the processing of contract 
payments thus reducing processing delays, input errors, rework, 
interest penalties, which all add to the cost to process each invoice 
and voucher. The proposed rule does not contain additional reporting 
requirements, recordkeeping, or other compliance requirements.
    The proposed rule does not duplicate, overlap, or conflict with any 
other Federal rules. No alternative approaches were considered, because 
this approach will have minimal impact on small entities.
    NASA invites comments from small business concerns and other 
interested parties on the expected impact of this rulemaking on small 
entities. NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by this 
proposed rule in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610 (NFS Case 
2017-N014), in correspondence.

V. Paperwork Reduction Act

    The proposed rule contains information collection requirements that 
require the approval of the Office of Management and Budget under the 
Paperwork Reduction Act (44 U.S.C. chapter 35; however, these changes 
to the NFS do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Number 
9000-0070, entitled Payments--FAR Sections Affected: 52.232-1 thru 
52.232-4 and 52.232-6 thru 52.232-11.

List of Subjects in 48 CFR Parts 1816, 1832, and 1852

    Government procurement.

William Roets,
Director, Contract and Grant Management Division.

    Accordingly, 48 CFR parts 1816, 1832, and 1852 are proposed to be 
amended as follows:

0
1. The authority citation for parts 1816, 1832, and 1852 continues to 
read as follows:

    Authority:  51 U.S.C. 20113(a) and 48 CFR chapter 1.

PART 1816--TYPES OF CONTRACTS

0
2. Revise 1816.506-70 to read as follows:


1816.506-70  NASA contract clause.

    Insert the clause at 1852.216-80, Task Ordering Procedure, in 
solicitations and contracts when an indefinite-delivery, task order 
contract is contemplated. The clause is applicable to both fixed-price 
and cost-reimbursement type contracts. The contracting officer shall 
use the clause with its--
    (a) Alternate I, if the cost type, fixed-price with prospective 
price redetermination, or fixed-price incentive contract does not 
include a NASA Form 533M reporting requirements; or
    (b) Alternate II, if a fixed price contract is contemplated.

PART 1832--CONTRACT FINANCING

0
3. Revise 1832.908-70 to read as follows:


1832.908-70  Submission of vouchers/invoices.

    Insert clause 1852.232-80, Submission of Vouchers/Invoices for 
Payment, in all solicitations and contracts.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


1852.216-80   [Amended]

0
4. Amend 1852.216-80 by revising ALTERNATE I and adding ALTERNATE II to 
read as follows:


1852.216-80  Task ordering procedure.

* * * * *

Alternate I (Date)

    As prescribed in 1816.506-70(a), insert the following paragraph 
(i):
    (i) Contractor shall submit progress reports, as required. When 
required, the reports shall contain, at a minimum, the following 
information:
    (1) Contract number, task order number, and date of the order.
    (2) Total estimated dollar amount of task order(s).
    (3) Cost and hours incurred to date for each issued task order.
    (4) Costs and hours estimated to complete each issued task order.
    (5) Significant issues/problems associated with a task order.
    (6) Cost summary of the status of all task orders issued under the 
contract.
    (7) Invoice number.

Alternate II (Date)

    As prescribed in 1816.506-70(b), insert the following paragraph 
(i):
    (i) Contractor shall submit progress reports, as required. When 
required, the reports shall contain, at a minimum, the following 
information:
    (1) Contract number, task order number, and date of the order.
    (2) Price and billed amounts to date for each task order.
    (3) Significant issues/problems associated with the task order.
    (4) Status of all task orders issued under the contract.
    (5) Invoice number.


1852.232-80   [Amended]

0
5. Amend section 1852.232-80 by--
0
a. Revising clause title and date;
0
b. In paragraph (b), removing the words ``submit all vouchers 
electronically using'' and adding the words ``submit all vouchers and 
invoices using'' in its place;
0
c. Revising paragraphs (c) and (d); and
0
d. In paragraph (e), removing the word ``vouchers'' and adding 
``vouchers/invoices'' wherever it occurs.
    The revisions read as follows:


1852.232-80  Submission of vouchers/invoices for payment.

    As prescribed in 1832.908-70, insert the following clause:

Submission of Vouchers/Invoices for Payment (Date)

* * * * *
    (c) Payment requests. (1) The payment periods are stipulated in the 
payment clause(s) contained in this contract.
    (2) Vouchers submitted under cost-type contracts and invoices 
submitted under fixed-price contracts shall include the items 
delineated in FAR 32.905(b) supported by relevant back-up 
documentation. Back-up documentation shall include at a minimum, the 
following information:
    (i) Vouchers. (A) Breakdown of billed labor costs and associated 
contractor generated supporting documentation for billed direct labor 
costs to include rates used and number of hours incurred.
    (B) Breakdown of billed other direct costs (ODCs) and associated 
contractor generated supporting documentation for billed ODCs.
    (C) Indirect rate(s) used to calculate the amount of billed 
indirect expenses.
    (D) Progress reports, as required.
    (ii) Invoices. (A) Description of goods and services delivered as 
part of the contract's terms and conditions, including the dates of 
delivery/performance.
    (B) Progress reports, as required.
    (C) Date goods and services were performed.
    (iii) Fee vouchers. (A) Listing of all provisionally-billed fee by 
period or date earned since contract award.

[[Page 43513]]

    (B) A reconciliation of all billed and earned fee.
    (C) A clear explanation of the fee calculations.
    (d) Non-electronic payment requests. The Contractor may submit a 
non-electronic voucher/invoice using the steps for non-electronic 
payment requests described at https://www.nssc.nasa.gov/vendorpayment, 
when any of the following conditions are met:
    (1) The Contracting Officer administering the contract for payment 
has determined, in writing, that electronic submission would be unduly 
burdensome to the Contractor.
    (2) The contract includes provisions allowing the contractor to 
submit vouchers or invoices using the steps for non-electronic payment. 
In such instances the Contractor agrees to submit non-electronic 
payment requests using the method or methods specified in Section G of 
the contract.
* * * * *
[FR Doc. 2017-19542 Filed 9-15-17; 8:45 am]
 BILLING CODE 7510-13-P

43512 Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Proposed Rules

currently received by various means PART 1816—TYPES OF CONTRACTS (i) Contractor shall submit progress
(70% by email, 15% by mail, 2% by fax, reports, as required. When required, the
13% by an electronic secure file ■ 2. Revise 1816.506–70 to read as reports shall contain, at a minimum, the
transfer). NASA’s current payment follows: following information:
request process for fee vouchers and 1816.506–70 NASA contract clause. (1) Contract number, task order
invoices requires manual intervention at number, and date of the order.
Insert the clause at 1852.216–80, Task
almost every step in the process. (2) Price and billed amounts to date
Ordering Procedure, in solicitations and
Manual intervention decreases speed for each task order.
contracts when an indefinite-delivery, (3) Significant issues/problems
and accuracy and adds to the cost per task order contract is contemplated. The
invoice/voucher. This rulemaking will associated with the task order.
clause is applicable to both fixed-price (4) Status of all task orders issued
further automate the processing of and cost-reimbursement type contracts.
contract payments thus reducing under the contract.
The contracting officer shall use the (5) Invoice number.
processing delays, input errors, rework, clause with its—
interest penalties, which all add to the (a) Alternate I, if the cost type, fixed- 1852.232–80 [Amended]
cost to process each invoice and price with prospective price ■ 5. Amend section 1852.232–80 by—
voucher. The proposed rule does not redetermination, or fixed-price ■ a. Revising clause title and date;
contain additional reporting incentive contract does not include a ■ b. In paragraph (b), removing the
requirements, recordkeeping, or other NASA Form 533M reporting words ‘‘submit all vouchers
compliance requirements. requirements; or electronically using’’ and adding the
The proposed rule does not duplicate, (b) Alternate II, if a fixed price words ‘‘submit all vouchers and
overlap, or conflict with any other contract is contemplated. invoices using’’ in its place;
Federal rules. No alternative approaches ■ c. Revising paragraphs (c) and (d); and
were considered, because this approach PART 1832—CONTRACT FINANCING ■ d. In paragraph (e), removing the word
will have minimal impact on small ‘‘vouchers’’ and adding ‘‘vouchers/
entities. ■ 3. Revise 1832.908–70 to read as
invoices’’ wherever it occurs.
NASA invites comments from small follows:
The revisions read as follows:
business concerns and other interested 1832.908–70 Submission of vouchers/
parties on the expected impact of this 1852.232–80 Submission of vouchers/
invoices.
invoices for payment.
rulemaking on small entities. NASA Insert clause 1852.232–80,
will also consider comments from small As prescribed in 1832.908–70, insert
Submission of Vouchers/Invoices for the following clause:
entities concerning the existing Payment, in all solicitations and
regulations in subparts affected by this contracts. Submission of Vouchers/Invoices for
proposed rule in accordance with 5 Payment (Date)
U.S.C. 610. Interested parties must PART 1852—SOLICITATION
submit such comments separately and * * * * *
PROVISIONS AND CONTRACT
should cite 5 U.S.C. 610 (NFS Case (c) Payment requests. (1) The payment
CLAUSES
2017–N014), in correspondence. periods are stipulated in the payment
1852.216–80 [Amended] clause(s) contained in this contract.
V. Paperwork Reduction Act ■ 4. Amend 1852.216–80 by revising (2) Vouchers submitted under cost-
The proposed rule contains ALTERNATE I and adding ALTERNATE type contracts and invoices submitted
information collection requirements that II to read as follows: under fixed-price contracts shall
require the approval of the Office of include the items delineated in FAR
Management and Budget under the
1852.216–80 Task ordering procedure. 32.905(b) supported by relevant back-up
Paperwork Reduction Act (44 U.S.C. * * * * * documentation. Back-up documentation
chapter 35; however, these changes to shall include at a minimum, the
Alternate I (Date) following information:
the NFS do not impose additional
As prescribed in 1816.506–70(a), (i) Vouchers. (A) Breakdown of billed
information collection requirements to
insert the following paragraph (i): labor costs and associated contractor
the paperwork burden previously
(i) Contractor shall submit progress generated supporting documentation for
approved under OMB Control Number
reports, as required. When required, the billed direct labor costs to include rates
9000–0070, entitled Payments—FAR
reports shall contain, at a minimum, the used and number of hours incurred.
Sections Affected: 52.232–1 thru
following information: (B) Breakdown of billed other direct
52.232–4 and 52.232–6 thru 52.232–11.
(1) Contract number, task order costs (ODCs) and associated contractor
List of Subjects in 48 CFR Parts 1816, number, and date of the order. generated supporting documentation for
1832, and 1852 (2) Total estimated dollar amount of billed ODCs.
task order(s). (C) Indirect rate(s) used to calculate
Government procurement.
(3) Cost and hours incurred to date for the amount of billed indirect expenses.
William Roets, each issued task order. (D) Progress reports, as required.
Director, Contract and Grant Management (4) Costs and hours estimated to (ii) Invoices. (A) Description of goods
Division. complete each issued task order. and services delivered as part of the
(5) Significant issues/problems contract’s terms and conditions,
sradovich on DSKBBY8HB2PROD with PROPOSALS

Accordingly, 48 CFR parts 1816, 1832,
and 1852 are proposed to be amended associated with a task order. including the dates of delivery/
as follows: (6) Cost summary of the status of all performance.
task orders issued under the contract. (B) Progress reports, as required.
■ 1. The authority citation for parts (7) Invoice number. (C) Date goods and services were
1816, 1832, and 1852 continues to read performed.
as follows: Alternate II (Date) (iii) Fee vouchers. (A) Listing of all
Authority: 51 U.S.C. 20113(a) and 48 CFR As prescribed in 1816.506–70(b), provisionally-billed fee by period or
chapter 1. insert the following paragraph (i): date earned since contract award.

VerDate Sep<11>2014 16:27 Sep 15, 2017 Jkt 241001 PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 E:\FR\FM\18SEP1.SGM 18SEP1

$Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Proposed Rules 43513 (B) A reconciliation of all billed and when any of the following conditions non-electronic payment. In such earned fee. are met: instances the Contractor agrees to (C) A clear explanation of the fee (1) The Contracting Officer submit non-electronic payment requests calculations. administering the contract for payment using the method or methods specified (d) Non-electronic payment requests. has determined, in writing, that in Section G of the contract. The Contractor may submit a non- electronic submission would be unduly electronic voucher/invoice using the * * * * * burdensome to the Contractor. [FR Doc. 2017–19542 Filed 9–15–17; 8:45 am] steps for non-electronic payment (2) The contract includes provisions BILLING CODE 7510–13–P requests described at https:// allowing the contractor to submit www.nssc.nasa.gov/vendorpayment, vouchers or invoices using the steps for sradovich on DSKBBY8HB2PROD with PROPOSALS VerDate Sep<11>2014 16:27 Sep 15, 2017 Jkt 241001 PO 00000 Frm 00010 Fmt 4702 Sfmt 9990 E:\FR\FM\18SEP1.SGM 18SEP1$

Document Created: 2017-09-16 00:52:05
Document Modified: 2017-09-16 00:52:05

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Comments on the proposed rule should be submitted in writing to
Contact		Mr. John J. Lopez, NASA HQ, Office of Procurement, Contract and Grant Policy Division, LP-011, 300 E Street SW., Washington, DC 20456-0001. Telephone 202-358-3740; facsimile 202- 358-3082.
FR Citation		82 FR 43511
RIN Number		2700-AE39
CFR Citation		48 CFR 1816 48 CFR 1832 48 CFR 1852