DATE: May 31, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Electronic Submission and Processing of Payment Requests

SOURCE: Federal Register, May 31, 2002, Vol. 67, No. 105, page 38057

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 1008 of the National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), which requires contractors to submit, and DOD to process, payment requests in electronic form.

EDITOR'S NOTE: Section 1008(a) required that contracts for which solicitations are issued after June 30, 2001, must require the contractor to submit electronically, and DOD to process electronically, any claim for payment under a DOD contract. However, Section 1008 permitted the Secretary of Defense to delay the implementation date to no later than October 1, 2002, if the Secretary found it was impracticable to implement the requirement until that later date.

On August 21, 2001, the Secretary of Defense published such a determination, and postponed the implementation data from June 30, 2001, to October 1, 2002, because DOD did not have the capability to receive all contractor claims for payment electronically by June 30, 2001, nor did it have the capability to process all claims and supporting documentation electronically. For more on the implementation delay, see the August 21, 2001, FEDERAL CONTRACTS DISPATCH "Department of Defense (DOD); Delay in Electronic Submission and Processing of Claims for Contract Payments."

DATES: Comments on the proposed rule must be submitted July 30, 2002.

ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Also, respondents who cannot submit comments through the web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Sandra Haberlin, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite DFARS Case 2002-D001 when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Sandra Haberlin, 703-602-0289.

SUPPLEMENTAL INFORMATION: This rule proposes to add a new DFARS Subpart 232.70, Electronic Submission and Processing of Payment Requests, and related provision DFARS 252.232-7XXX, Electronic Submission of Payment Requests, to implement Section 1008 of Public Law 106-398. Section 1008 provides that:

Section 1008 was to apply to all contracts resulting from solicitations issued after June 30, 2001, but the Secretary of Defense delayed implementation until October 1, 2002, as permitted by Section 1008.

New DFARS Subpart 232.70 would consist of the following sections:

In addition, DFARS 252.232-7XXX would reflect the procedures and requirements in DFARS Subpart 232.70.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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