[Federal Register Volume 60, Number 192 (Wednesday, October 4, 1995)]
[Proposed Rules]
[Pages 51964-51968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24455]
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ENVIRONMENTAL PROTECTION AGENCY
48 CFR Parts 1510, 1532, 1552 and 1553
[FRL-5310-7]
Acquisition Regulation; Monthly Progress Reports and Submission
of Invoices
AGENCY: Environmental Protection Agency.
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
amend the EPA Acquisition Regulation (EPAAR) to revise contract clauses
for monthly progress reports, submission of invoices, and other related
information.
DATES: Comments should be submitted by December 4, 1995.
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
As a result of an internal assessment of EPA's invoice review
process for contracts, the Agency is proposing changes to certain EPAAR
clauses and related information. This includes requesting more detailed
cost information from contractors in a number of areas, including
charges by subcontractors. These changes will enhance EPA's ability to
determine whether contract costs are allowable for payment purposes.
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 recordkeeping requirements contained in this
proposed rule under the provisions of the Paperwork Reduction Act, 44
U.S.C. 3501 et seq. An OMB control number 2030-0005 has been assigned.
This rule is not estimated to change the annual burden of
information collection and recordkeeping requirements, which is
estimated to be 43 hours per response.
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
[[Page 51965]]
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 of 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 man hour expenditures that are
far below the level established for UMRA applicability. Thus, the
proposed rule is not subject to the requirements of sections 202 and
205 of the UMRA.
List of Subjects in 48 CFR Parts 1510, 1532, 1552 and 1553
Government procurement.
For the reasons set forth in the preamble, Chapter 15 of Title 48
Code of Federal Regulations 1510, 1532, 1552 and 1553 is proposed to be
amended as follows:
1. The authority citation for 48 CFR Parts 1510, 1532, 1552 and
1553 continues to read as follows:
Authority: Sec. 205(c), 63 Stat. 390 as amended, 40 U.S.C.
486(c).
1510.011-71 [Removed and reserved]
2. Section 1510.011-71 is removed and reserved.
3. 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 and reserved]
4. Section 1510.011-73 is removed and reserved.
1510.011-74 [Removed and reserved]
5. Section 1510.011-74 is removed and reserved.
6. Section 1532.170 is amended by revising paragraph (b) to read as
follows:
1532.170 Forms.
(a) * * *
(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.
* * * * *
7. 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.
1552.210-71 [Removed and reserved]
8. Section 1552.210-71 is removed and reserved.
9. 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 (XXX 1995)
(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, a
description of the work accomplished to support the cost, and a
schedule of deliverables for the reporting period. If the work is
ordered using work assignments or delivery orders, include the
percentage of work ordered and 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 negotiated contract average 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 Level of Effort 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.
(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
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____________ Project Officer.
____________ Contracting Officer.
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[[Page 51966]]
10. Section 1552.210-73 is removed and reserved.
11. Section 1552.210-74 is removed and reserved.
12. 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 (XXX 1995)
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
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 detailed 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) 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. 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. 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 (XXX 1995)
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 detailed 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.
* * * * *
13. 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 contracts.
1553.232-76 [Removed and reserved]
14. Section 1553.232-76 is removed and reserved.
Dated: September 25, 1995.
Betty L. Bailey,
Director, Office of Acquisition.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix--Notice of Contract Costs Suspended or Disallowed
BILLING CODE 6560-50-P
[[Page 51967]]
[GRAPHIC][TIFF OMITTED]TP04OC95.000
BILLING CODE 6560-50-C
[[Page 51968]]
Instructions for EPA Form 1900-68
When a PO or CO identifies costs in a voucher that are to be
suspended or disallowed, the Form 1900-68 is used to identify those
costs, the associated reasons and to communicate the action to all
necessary parties. Examples of costs that a PO might suspend without CO
involvement are: math errors, incorrect rates, and a lack of available
funding. Examples of costs that CO involvement would be necessary to
suspend or disallow costs include lack of authorization to incur costs,
unnecessary costs incurred, and excessive costs. Section A, Cost
Suspension, may be filled out by either the CO or PO. The PO and/or CO
must fill out the Form 1900-68 explaining the suspended amount, sign
and date the Form and send it to the contractor. The contractor must
fill out the acknowledgement of receipt on the applicable area on Form
1900-68 and return a copy of it to either the PO or CO who made the
suspension. A copy of the Form 1900-68 would go to RTP Finance with the
Approval Forms package. Copies of the Form 1900-68 would be filed by PO
and/or CO and a copy sent to the applicable Cost Advisory Office for
use in interim and final audits.
The Form 1900-68 states that the contractor has 60 days to respond
to the suspension, or the costs will be considered disallowed and those
costs should be transferred to an unallowable account in the
contractor's accounting records. If the contractor wishes to respond to
the suspension, it must as a minimum furnish documentation specified on
the Form 1900-68 for the costs to be considered allowable. The
contractor will then resubmit this documentation to the PO and CO for
review. Either the CO or PO who originally suspended the costs will
consider the documentation and, if it is adequate, they will fill out a
revised Form 1900-68 Block B. (Removal of Suspension) for some or all
of the costs suspended. Copies of this revised Form 1900-68 would go to
the contractor, CO and PO, RTP, FMC, and Cost Advisory Office.
The contractor may rebill suspended costs after receiving the
Removal of Suspension using a separate invoice and attach the Form
1900-68 Removal of Suspension notice to the invoice. The contractor
must then resubmit this bill for payment in accordance with contract
invoicing requirements.
If the contractor prepares supporting documentation for suspended
costs that the PO deems unacceptable, the PO will notify the CO of this
and ask for a final determination on the allowability of the costs. If
the CO agrees with the PO, a revised Form 1900-68 with Block C
(Disallowance of Costs) should be completed and sent to the contractor
instructing the contractor to eliminate such costs on future invoices
and to move such costs to unallowable accounts on their accounting
records. The contractor must acknowledge receipt of the disallowance
notice by signing and returning the notice to the CO. Where the CO
processed the suspension, the CO will inform the PO and disallow the
cost. Copies of the revised Form 1900-68 should be sent to RTP Finance,
the contract file, and the applicable Cost Advisory Office.
[FR Doc. 95-24455 Filed 10-3-95; 8:45 am]
BILLING CODE 6560-50-P
