98-4151. Proposed Collection; Comment Request Entitled Prompt Payment

[Federal Register Volume 63, Number 33 (Thursday, February 19, 1998)]
[Notices]
[Page 8442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4151]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0102]


Proposed Collection; Comment Request Entitled Prompt Payment

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice of request for comments regarding a revision to an 
existing OMB clearance (9000-0102).

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SUMMARY: Under the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. Chapter 35), the Federal Acquisition Regulation (FAR) 
Secretariat will be submiting to the Office of Management and Budget 
(OMB) a request to review and approve a revision to a currently 
approved information collection requirement concerning Prompt Payment. 
The clearance currently expires on May 31, 1998.

DATES: Comments may be submitted on or before April 20, 1998.

FOR FURTHER INFORMATION CONTACT: Jerry Olson, Federal Acquisition 
Policy Division, GSA [phone].

ADDRESSES: Comments regarding this burden estimate or any other aspect 
of this collection of information, including suggestions for reducing 
this burden, should be submitted to: FAR Desk Officer, OMB, Room 10102, 
NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, FAR Secretariat, 1800 F Street, NW, Room 4037, 
Washington, DC 20405. Please cite OMB Control No. 9000-0102, Prompt 
Payment, in all correspondence.

SUPPLEMENTARY INFORMATION:

A. Purpose

    Part 32 of the Federal Acquisition Regulation (FAR) and the clause 
at FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, 
require that contractors under fixed-price construction contracts 
certify, for every progress payment request, that payments to 
subcontractors/suppliers have been made from previous payments received 
under the contract and timely payments will be made from the proceeds 
of the payment covered by the certification, and that this payment 
request does not include any amount which the contractor intends to 
withhold from a subcontractor/ supplier. Part 32 of the FAR and the 
clause at 52.232-27, Prompt Payment for Construction Contracts, further 
require that contractors on construction contracts:
    (a) Notify subcontractors/suppliers of any amounts to be withheld 
and furnish a copy of the notification to the contracting officer;
    (b) Pay interest to subcontractors/suppliers if payment is not made 
by 7 days after receipt of payment from the Government, or within 7 
days after correction of previously identified deficiencies;
    (c) Pay interest to the Government if amounts are withheld from 
subcontractors/suppliers after the Government has paid the contractor 
the amounts subsequently withheld, or if the Government has 
inadvertently paid the contractor for nonconforming performance; and
    (d) Include a payment clause in each subcontract which obligates 
the contractor to pay the subcontractor for satisfactory performance 
under its subcontract not later than 7 days after such amounts are paid 
to the contractor, include an interest penalty clause which obligates 
the contractor to pay the subcontractor an interest penalty if payments 
are not made in a timely manner, and include a clause requiring each 
subcontractor to include these clauses in each of its subcontractors 
and to require each of its subcontractors to include similar clauses in 
their subcontracts.
    These requirements are imposed by Pub. L. 100-496, the Prompt 
Payment Act Amendments of 1988.
    Contracting officers will be notified if the contractor withholds 
amounts from subcontractors/suppliers after the Government has already 
paid the contractor the amounts withheld. The contracting officer must 
then charge the contractor interest on the amounts withheld from 
subcontractors/suppliers. Federal agencies could not comply with the 
requirements of the law if this information were not collected.

B. Annual Reporting Burden

    Public reporting burden for this collection of information is 
estimated to average .11 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows: Respondents, 
38,194; responses per respondent, 11; total annual responses, 420,136; 
preparation hours per response, .11; and total response burden hours, 
46,215.

C. Annual Recordkeeping Burden

    The annual recordkeeping burden is estimated as follows: 
Recordkeepers, 34,722; hours per recordkeeper, 18; and total 
recordkeeping burden hours, 624,996.
    Obtaining Copies of Proposals: Requester may obtain a copy of the 
justification from the General Services Administration, FAR Secretariat 
(MVRS), 1800 F Street, NW, Room 4037, Washington, DC 20405, telephone 
[phone]. Please cite OMB Control No. 9000-0102, Prompt Payment, 
in all correspondence.

    Dated: February 13, 1998.
Sharon A. Kiser,
FAR Secretariat.
[FR Doc. 98-4151 Filed 2-18-98; 8:45 am]
BILLING CODE 6820-34-P