[Federal Register Volume 86, Number 71 (Thursday, April 15, 2021)]
[Proposed Rules]
[Pages 19833-19838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07580]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1532 and 1552

[EPA-HQ-OMS-2020-0389; FRL-10021-63-OMS]


Environmental Protection Agency Acquisition Regulation (EPAAR); 
Electronic Invoicing and the Invoice Processing Platform (IPP)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is amending an 
existing EPAAR clause to further address electronic invoicing at EPA 
via the Invoice Processing Platform (IPP).

DATES: Comments must be received on or before June 14, 2021.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OMS-2020-0389, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e. on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Thomas Valentino, Policy, Training and 
Oversight Division, Acquisition Policy and Training Branch (3802R), 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, 
DC 20460; telephone number: (202) 564-4522; email address: 
valentino.thomas@epa.gov.

SUPPLEMENTARY INFORMATION:

I. General Information

    1. Submitting Classified Business Information. Do not submit CBI to 
EPA website https://www.regulations.gov or email. Clearly mark the part 
or all of the information that you claim to be CBI. For CBI information 
in a disk or CD-ROM that you mail to EPA, mark the outside of the disk 
or CD-ROM as CBI, and then identify electronically within the disk or 
CD-ROM the specific information that is claimed as CBI. In addition to 
one complete version of the comment that includes information claimed 
as CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The Agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) Part or section number.
     Explain why you agree or disagree, suggest alternatives, 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.
    3. Instructions: All submissions received must include the Docket 
ID No. for this rulemaking. Comments received may be posted without 
change to https://;www.regulations.gov/, including any personal 
information provided. For detailed instructions on sending comments and 
additional information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document. Out of an abundance of caution 
for members of the public and our staff, the EPA Docket Center and 
Reading Room are closed to the public, with limited exceptions, to 
reduce the risk of transmitting COVID-19. Our Docket Center staff will 
continue to provide remote customer service via email, phone, and 
webform. We encourage the public to submit comments via https://www.regulations.gov/ or email, as there may be a delay in processing 
mail and faxes. Hand deliveries and couriers may be received by 
scheduled appointment only. For further information on EPA Docket 
Center services and the current status, please visit us online at 
https://www.epa.gov/dockets. The EPA continues to carefully and 
continuously monitor information from the Centers for Disease Control 
and Prevention (CDC), local area health departments, and our Federal 
partners so that we can respond rapidly as conditions change regarding 
COVID-19.

II. Background

    The EPA is amending an existing EPAAR clause to further address 
electronic invoicing at EPA via the Invoice Processing Platform (IPP). 
Currently EPA has one clause that addresses IPP, which is clause 
1552.232-70, Submission of Invoices. Clause 1552.232-70 is written for 
cost-reimbursable and time-and-materials contracts and orders where 
considerable supporting documentation is required. Such documentation 
is necessary for those types of contracts and orders but is not 
necessary for other contract types, like firm-fixed-price (FFP). 
Therefore, the subject clause is being amended to include other 
contract and order types like FFP, when it is not suitable to use 
clause 1552.232-70 in its current form.

III. Proposed Rule

    The proposed rule amends EPA Acquisition Regulation (EPAAR) part 
1532, Contract Financing, by amending Sec.  1532.908, Contract Clauses. 
EPAAR Subpart 1552.2, Texts of Provisions and Clauses, is amended by 
modifying EPAAR Sec.  1552.232-70 and also changing the clause title, 
from Submission of Invoices to Additional Instructions for Submission 
of Electronic Invoices via the Invoice Processing Platform (IPP).
    1. EPAAR Sec.  1532.908 amends the prescription for use of Sec.  
1552.232-70 by adding a prescription for Alternate 2 use.
    2. EPAAR Sec.  1552.232-70, Submission of Invoices, is changed to 
Additional Instructions for Submission of Electronic Invoices via the 
Invoice Processing Platform (IPP), and adds an Alternate 2.

[[Page 19834]]

IV. Statutory and Executive Orders Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (E.O.) 12866 (58 FR 51735, October 4, 1993) 
and is therefore not subject to review under the E.O.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
Burden is defined at 5 CFR 1320.3(b).

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute; unless the agency certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities. Small entities include small businesses, small 
organizations, and small governmental jurisdictions. For purposes of 
assessing the impact of this proposed rule on small entities, ``small 
entity'' is defined as: (1) A small business that meets the definition 
of a small business found in the Small Business Act and codified at 13 
CFR 121.201; (2) a small governmental jurisdiction that is a government 
of a city, county, town, school district or special district with a 
population of less than 50,000; or (3) a small organization that is any 
not-for-profit enterprise which is independently owned and operated and 
is not dominant in its field. After considering the economic impacts of 
this rule on small entities, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
In determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, because the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the proposed rule on small entities'' 5 U.S.C. 503 
and 604. Thus, an agency may certify that a rule will not have a 
significant economic impact on a substantial number of small entities 
if the rule relieves regulatory burden, or otherwise has a positive 
economic effect on all of the small entities subject to the rule. This 
action establishes a new EPAAR clause that will not have a significant 
economic impact on a substantial number of small entities. We continue 
to be interested in the potential impacts of the rule on small entities 
and welcome comments on issues related to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4), establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, Local, and Tribal 
governments and the private sector. This rule contains no Federal 
mandates (under the regulatory provisions of the Title II of the UMRA) 
for State, Local, and Tribal governments or the private sector. The 
rule imposes no enforceable duty on any State, Local or Tribal 
governments or the private sector. Thus, the rule is not subject to the 
requirements of sections 202 and 205 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and Local officials in the 
development of regulatory policies that have federalism implications. 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.'' This rule 
does not have federalism implications. It will not have substantial 
direct effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government as specified in 
Executive Order 13132.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This rule does not have 
tribal implications as specified in Executive Order 13175.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health and Safety Risks'' (62 FR 19885, April 23, 1997), 
applies to any rule that: (1) Is determined to be economically 
significant as defined under E.O. 12886, and (2) concerns an 
environmental health or safety risk that may have a proportionate 
effect on children. This rule is not subject to E.O. 13045 because it 
is not an economically significant rule as defined by Executive Order 
12866, and because it does not involve decisions on environment health 
or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution or Use'' (66 FR 28335 (May 22, 2001), because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995 (NTTAA)

    Section 12(d) (15 U.S.C. 272 note) of the National Technology 
Transfer and Advancement Act of 1995, Public Law 104-113, directs EPA 
to use voluntary consensus standards in its regulatory activities 
unless to do so would be inconsistent with applicable law or otherwise 
impractical. Voluntary consensus standards are technical standards 
(e.g., materials specifications, test methods, sampling procedures and 
business practices) that are developed or adopted by voluntary 
consensus standards bodies. The NTTAA directs EPA to provide Congress, 
through OMB, explanations when the Agency decides not to use available 
and applicable voluntary consensus standards. This action does not 
involve technical standards. Therefore, EPA is not considering the use 
of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (February 16, 1994) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to

[[Page 19835]]

make environmental justice part of their mission by identifying and 
addressing, as appropriate, disproportionately high and adverse human 
health or environmental effects of their programs, policies, and 
activities on minority populations and low-income populations in the 
United States. EPA has determined that this proposed rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection provided to human health or the 
environment in the general public.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a major rule may take effect, the agency 
promulgating the rule must submit a rule report, which includes a copy 
of the rule, to each House of the Congress and to the Comptroller 
General of the United States. Section 804(2) defines a ``major rule'' 
as any rule that the Administrator of the Office of Information and 
Regulatory Affairs of the Office of Management and Budget finds has 
resulted in or is likely to result in (1) an annual effect on the 
economy of $100,000,000 or more; (2) a major increase in costs or 
prices for consumers, individual industries, Federal, State, or local 
government agencies, or geographic regions; or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export markets. 
EPA is not required to submit a rule report regarding this action under 
section 801 as this is not a major rule by definition.

List of Subjects in 48 CFR Parts 1532 and 1552

    Environmental protection, Accounting, Government procurement, 
Reporting and recordkeeping requirements.

Kimberly Patrick,
Director, Office of Acquisition Solutions.

    For the reasons set forth in the preamble, EPA proposes to amend 
EPAAR parts 1532 and 1552 as follows:

PART 1532--CONTRACT FINANCING

0
1. The authority citations for part 1532 continue to read as follows:

    Authority:  5 U.S.C. 301 and 41 U.S.C. 418b.

0
2. Revise Sec.  1532.908 to read as follows:


1532.908  Contract clause.

    (a)(i) The Contracting Officer shall insert clause 1552.232-70 in 
cost-reimbursable procurements.
    (ii) The Contracting Officer shall insert clause 1552.232-70 
Alternate 1 in fixed-rate and non-commercial time & materials (T&M) 
procurements.
    (iii) The Contracting Officer shall insert clause 1552.232-70 
Alternate 2 in all other procurements where electronic invoicing via 
the Invoice Processing Platform (IPP) is required EXCEPT for simplified 
acquisitions (for instance, use Alternate 2 for contract/order types 
such as firm-fixed-price, commercial items, architect-engineering and 
construction).
    (b) In addition to clause 1552.232-70, Contracting Officers must 
also select the appropriate Federal Acquisition Regulation (FAR) clause 
to include in the subject procurement in accordance with FAR 32.908, as 
applicable.

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. The authority citations for part 1552 continue to read as follows:

    Authority:  5 U.S.C. 301 and 41 U.S.C. 418b and 1707.

0
4. Revise Sec.  1552.232-70, to read as follows:


Sec.  1552.232-70  Additional Instructions for Submission of Electronic 
Invoices via the Invoice Processing Platform (IPP).

    As prescribed in 1532.908, insert the following clause:

Additional Instructions for Submission of Electronic Invoices Via the 
Invoice Processing Platform (IPP) (date)

    (a) Electronic invoicing and the Invoice Processing Platform 
(IPP)--(1) Definitions. As used in this clause--
    Contract financing payment and invoice payment are defined in 
Federal Acquisition Regulation (FAR) 32.001.
    Electronic form means an automated system that transmits 
information electronically from the initiating system to all 
affected systems. Facsimile, email, and scanned documents are not 
acceptable electronic forms for submission of payment requests. 
However, scanned documents are acceptable when they are part of a 
submission of a payment request made using Invoice Processing 
Platform or another electronic form authorized by the Contracting 
Officer.
    Payment request means any request for contract financing payment 
or invoice payment submitted by the Contractor under this contract.
    (2)(i) Except as provided in paragraph (c) of this clause, the 
Contractor shall submit invoices using the electronic invoicing 
program Invoice Processing Platform (IPP), which is a secure web-
based service provided by the U.S. Treasury that more efficiently 
manages government invoicing.
    (ii) Under this contract, the following documents are required 
to be submitted as an attachment to the IPP invoice: (This is a 
fill-in for acceptable types of required documentation, such as an 
SF 1034 and 1035, or an invoice/self-designed form on company 
letterhead that contains the required information.)
    (iii) The Contractor's Government Business Point of Contact (as 
listed in System for Award Management (SAM)) will receive enrollment 
instructions via email from the IPP. The Contractor must register 
within 3 to 5 days of receipt of such email from IPP.
    (iv) Contractor assistance with enrollment can be obtained by 
contacting the IPP Production Helpdesk via email at 
IPPCustomerSupport@fiscal.treasury.gov or by telephone at (866) 973-
3131.
    (3) If the Contractor is unable to comply with the requirement 
to use IPP for submitting invoices for payment, the Contractor shall 
submit a waiver request in writing to the Contracting Officer. The 
Contractor may submit an invoice using other than IPP only when--
    (i) The Contracting Officer administering the contract for 
payment has determined, in writing, that electronic submission would 
be unduly burdensome to the Contractor; and in such cases, the 
Contracting Officer shall modify the contract to include a copy of 
the Determination; or
    (ii) When the Governmentwide commercial purchase card is used as 
the method of payment.
    (4) The Contractor shall submit any non-electronic payment 
requests using the method or methods specified in Section G of the 
contract.
    (5) In addition to the requirements of this clause, the 
Contractor shall meet the requirements of the appropriate payment 
clauses in this contract when submitting payment requests.
    (6) Invoices submitted through IPP will be either rejected, or 
accepted and paid, in their entirety, and will not be paid on a 
partial basis.
    (b) Invoice preparation. The Contractor shall prepare its 
invoice or request for contract financing payment in accordance with 
FAR 32.905 on the prescribed Government forms, or the Contractor may 
submit self-designed forms which contain the required information. 
Standard Form 1034, Public Voucher for Purchases and Services other 
than Personal, is prescribed for used by contractors to show the 
amount claimed for reimbursement. Standard Form 1035, Public Voucher 
for Purchases and Services other than Personal--Continuation Sheet, 
is prescribed for use to furnish the necessary supporting detail or 
additional information required by the Contracting Officer.
    (c) Invoice content. (1) The Contractor shall prepare a contract 
level invoice or request for contract financing payment in 
accordance with the invoice preparation instructions. If contract 
work is authorized by an individual task order or delivery order 
(TO/DO), the invoice or request for contract financing

[[Page 19836]]

payment shall also include a summary of the current and cumulative 
amounts claimed by cost element for each TO/DO and for the contract 
total, as well as any supporting data for each TO/DO 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.
    (d) Subcontractor charges. (1) The charges for subcontracts 
shall be further detailed in a supporting schedule showing the major 
cost elements for each subcontract.
    (2) On a case-by-case basis, when needed to verify the 
reasonableness of subcontractor costs, the Contracting Officer may 
require that the contractor obtain from the subcontractor cost 
information in the detail set forth in paragraph (c)(2) of this 
section. This information should be obtained through a means which 
maintains subcontractor confidentiality (for example, via sealed 
envelopes), if the subcontractor expresses Confidential Business 
Information (CBI) concerns.
    (e) Period of performance indication. 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 base contract and each option period.
    (f) Invoice submittal. (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.
    (g) Invoice Preparation Instructions--SF 1034. The information 
which a contractor is required to submit in its Standard Form 1034 
is set forth as follows:
    (1) U.S. Department, Bureau, or establishment and location--
Insert the names and address of the servicing finance office, unless 
the contract specifically provides otherwise.
    (2) Date Voucher Prepared--Insert date on which the public 
voucher is prepared and submitted.
    (3) Contract/Delivery Order Number and Date--Insert the number 
and date of the contract and task order or delivery order, if 
applicable, under which reimbursement is claimed.
    (4) Requisition Number and Date--Leave blank.
    (5) Voucher Number--Insert the appropriate serial number of the 
voucher. A separate series of consecutive numbers, beginning with 
Number 1, shall be used by the contractor for each new contract. For 
an adjustment invoice, write ``[invoice number] #Adj'' at the 
voucher number. For a final invoice, put invoice number F. For a 
completion invoice, put invoice number #C.
    (6) Schedule Number; Paid By; Date Invoice Received--Leave 
blank.
    (7) Discount Terms--Enter terms of discount, if applicable.
    (8) Payee's Account Number--This space may be used by the 
contractor to record the account or job number(s) assigned to the 
contract or may be left blank.
    (9) Payee's Name and Address--Show the name of the contractor 
exactly as it appears in the contract and its correct address, 
except when an assignment has been made by the contractor, or the 
right to receive payment has been restricted, as in the case of an 
advance account. When the right to receive payment is restricted, 
the type of information to be shown in this space shall be furnished 
by the Contracting Officer.
    (10) Shipped From; To; Weight Government B/L Number--Insert for 
supply contracts.
    (11) Date of Delivery or Service--Show the month, day and year, 
beginning and ending dates of incurrence of costs claimed for 
reimbursement. Adjustments to costs for prior periods should 
identify the period applicable to their incurrence, e.g., revised 
provisional or final indirect cost rates, award fee, etc.
    (12) Articles or Services--Insert the following: ``For detail, 
see Standard Form 1035 total amount claimed transferred from Page 
_of Standard Form 1035.'' Insert ``COST REIMBURSABLE--PROVISIONAL 
PAYMENT'' or ``INDEFINITE QUANTITY/INDEFINITE DELIVERY--PROVISIONAL 
PAYMENT'' on the Interim public vouchers. Insert ``COST 
REIMBURSABLE--COMPLETION VOUCHER'' or ``INDEFINITE QUANTITY/
INDEFINITE DELIVERY--COMPLETION VOUCHER'' on the Completion public 
voucher. Insert ``COST REIMBURSABLE--FINAL VOUCHER'' or ``INDEFINITE 
QUANTITY/INDEFINITE DELIVERY--FINAL VOUCHER'' on the final public 
voucher. Insert the following certification, signed by an authorized 
official, on the face of the Standard Form 1034:
    ``I certify that all payments requested are for appropriate 
purposes and in accordance with the agreements set forth in the 
contract.''

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(Name of Official)

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(Title)

    (13) Quantity; Unit Price--Insert for supply contracts.
    (14) Amount--Insert the amount claimed for the period indicated 
in paragraph (g)(11) of this clause.
    (h) Invoice Preparation Instructions--SF 1035. The information 
which a contractor is required to submit in its Standard Form 1035 
is set forth as follows:
    (1) U.S. Department, Bureau, or Establishment--Insert the name 
and address of the servicing finance office.
    (2) Voucher Number--Insert the voucher number as shown on the 
Standard Form 1034.
    (3) Schedule Number--Leave blank.
    (4) Sheet Number--Insert the sheet number if more than one sheet 
is used in numerical sequence. Use as many sheets as necessary to 
show the information required.
    (5) Number and Date of Order--Insert payee's name and address as 
in the Standard Form 1034.
    (6) Articles or Services--Insert the contract number as in the 
Standard Form 1034.
    (7) Amount--Insert the latest estimated cost, fee (fixed, base, 
or award, as applicable), total contract value, and amount and type 
of fee payable (as applicable).
    (8) A summary of claimed current and cumulative costs and fee by 
major cost element--Include the rate(s) at which indirect costs are 
claimed and indicate the base of each by identifying the line of 
costs to which each is applied. The rates invoiced should be as 
specified in the contract or by a rate agreement negotiated by EPA's 
Cost and Rate Negotiation Team.
    (9) Fee--The fee shall be determined in accordance with 
instructions appearing in the contract.
    Note to paragraph (h)--Amounts claimed on vouchers must be based 
on records maintained by the contractor to show by major cost 
element the amounts claimed for reimbursement for each applicable 
contract. The records must be maintained based on the contractor's 
fiscal year and should include reconciliations of any differences 
between the costs incurred and amounts claimed for reimbursement. A 
memorandum record reconciling the total indirect cost(s) claimed 
should also be maintained.
    (i) Supporting Schedules for Cost Reimbursement Contracts. The 
following backup information is required as an attachment to the 
invoice as shown by category of cost:
    (1) Direct Labor--Identify the number of hours (by contractor 
labor category and total) and the total loaded direct labor hours 
billed for the period in the invoice.
    (2) Indirect Cost Rates--Identify by cost center, the indirect 
cost rate, the period, and the cost base to which it is applied.
    (3) Subcontracts--Identify the major cost elements for each 
subcontract.
    (4) Other Direct Costs--When the cost for an individual cost 
(e.g., photocopying, material and supplies, telephone usage) exceeds 
$1,000 per the invoice period, provide a detailed explanation for 
that cost category.
    (5) Contractor Acquired Equipment (if authorized by the 
contract)--Identify by item the quantities, unit prices, and total 
dollars billed.

[[Page 19837]]

    (6) Contractor Acquired Software (if authorized by the 
contract)--Identify by item the quantities, unit prices, and total 
dollars billed.
    (7) Travel--When travel costs exceed $2,000 per invoice period, 
identify by trip, the number of travelers, the duration of travel, 
the point of origin, destination, purpose of trip, transportation by 
unit price, per diem rates on daily basis and total dollars billed. 
Detailed reporting is not required for local travel. The manner of 
breakdown, e.g., task order/delivery order basis with/without 
separate program management, contract period will be specified in 
the contract instructions.

    Note to paragraph (i)  --Any costs requiring advance consent by 
the Contracting Officer will be considered improper and will be 
disallowed, if claimed prior to receipt of Contracting Officer 
consent. Include the total cost claimed for the current and 
cumulative-to-date periods. After the total amount claimed, provide 
summary dollar amounts disallowed on the contract as of the date of 
the invoice. Also include an explanation of the changes in 
cumulative costs disallowed by addressing each adjustment in terms 
of: Voucher number, date, dollar amount, source, and reason for the 
adjustment. Disallowed costs should be identified in unallowable 
accounts in the contractor's accounting system.

    (j) Supporting Schedules for Time and Materials Contracts. The 
following backup information is required as an attachment to the 
invoice as shown by category of cost:
    (1) Direct Labor--Identify the number of hours (by contractor 
labor category and total) and the total direct labor hours billed 
for the period of the invoice.
    (2) Subcontracts--Identify the major cost elements for each 
subcontract.
    (3) Other Direct Costs--When the cost for an individual cost 
(e.g., photocopying, material and supplies, telephone usage) exceeds 
$1,000 per the invoice period, provide a detailed explanation for 
that cost category.
    (4) Indirect Cost Rates--Identify by cost center, the indirect 
cost rate, the period, and the cost base to which it is applied.
    (5) Contractor Acquired Equipment--Identify by item the 
quantities, unit prices, and total dollars billed.
    (6) Contractor Acquired Software--Identify by item the 
quantities, unit prices, and total dollars billed.
    (7) Travel--When travel costs exceed $2,000 per invoice period, 
identify by trip, the number of travelers, the duration of travel, 
the point of origin, destination, purpose of trip, transportation by 
unit price, per diem rates on daily basis and total dollars billed. 
Detailed reporting is not required for local travel. The manner of 
breakdown, e.g., task order/delivery order basis with/without 
separate program management, contract period will be specified in 
the contract instructions.

    Note to paragraph (j) --Any costs requiring advance consent by 
the Contracting Officer will be considered improper and will be 
disallowed, if claimed prior to receipt of Contracting Officer 
consent. Include the total cost claimed for the current and 
cumulative-to-date periods. After the total amount claimed, provide 
summary dollar amounts disallowed on/the contract as of the date of 
the invoice. Also include an explanation of the changes in 
cumulative costs disallowed by addressing each adjustment in terms 
of: Voucher number, date, dollar amount, source, and reason for the 
adjustment. Disallowed costs should be identified in unallowable 
accounts in the contractor's accounting system.
    (k) Adjustment vouchers. Adjustment vouchers should be submitted 
if finalized indirect rates were received but the rates are not for 
the entire period of performance. For example, the base period of 
performance is for a calendar year but your indirect rates are by 
fiscal year. Hence, only part of the base period can be adjusted for 
the applicable final indirect rates. These invoices should be 
annotated with ``adj'' after the invoice number.
    (l) Final vouchers. Final Vouchers shall be submitted if 
finalized rates have been received for the entire period of 
performance. For example, the base period of performance is for a 
calendar year but your indirect rates are by fiscal year. You have 
received finalized rates for the entire base period that encompass 
both fiscal years that cover the base period. In accordance with FAR 
52.216-7, these invoices shall be submitted within 60 days after 
settlement of final indirect cost rates. They should be annotated 
with the word ``Final'' or ``F'' after the invoice number. Due to 
system limitations, the invoice number cannot be more than 11 
characters to include spaces.
    (m) Completion vouchers. In accordance with FAR 52.216-7(d)(5), 
a completion voucher shall be submitted within 120 days (or longer 
if approved in writing by the Contracting Officer) after settlement 
of the final annual indirect cost rates for all years of a 
physically complete contract. The voucher shall reflect the settled 
amounts and rates. It shall include settled subcontract amounts and 
rates. The prime contractor is responsible for settling 
subcontractor amounts and rates included in the completion invoice. 
Since EPA's invoices must be on a period of performance basis, the 
contractor shall have a completion invoice for each year of the 
period of performance. This voucher must be submitted to the 
Contracting Officer for review and approval before final payment can 
be made on the contract. The Contracting Officer may request an 
audit of the completion vouchers before final payment is made. In 
addition, once approved, the Contracting Officer will request the 
appropriate closeout paperwork for the contract. For contracts 
separately invoiced by delivery or task order, provide a schedule 
showing final total costs claimed by delivery or task order and in 
total for the contract. In addition to the completion voucher, the 
contractor must submit the Contractor's Release; Assignee's Release, 
if applicable; the Contractor's Assignment of Refunds, Rebates, 
Credits and other Amounts; the Assignee's Assignment of Refunds, 
Rebates, Credits and other Amounts, if applicable; and the 
Contractor's Affidavit of Waiver of Lien, when required by the 
contract.
    Alternate 1 (For use in fixed-rate and non-commercial time & 
materials (T&M) procurements) (date). If the procurement is fixed-
rate or non-commercial T&M, substitute the basic (c)(2) paragraph 
with the following:
    (c)(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.
    Alternate 2 (For use in all other procurements where electronic 
invoicing via the Invoice Processing Platform (IPP) is required 
EXCEPT for simplified acquisitions)(date). Use Alternate 2 for 
contract/order types such as firm-fixed-price, commercial items, 
architect-engineering and construction for IPP purposes.
    (a) Definitions. As used below--
    Contract financing payment and invoice payment are defined in 
Federal Acquisition Regulation (FAR) 32.001.
    Electronic form means an automated system that transmits 
information electronically from the initiating system to all 
affected systems. Facsimile, email, and scanned documents are not 
acceptable electronic forms for submission of payment requests. 
However, scanned documents are acceptable when they are part of a 
submission of a payment request made using Invoice Processing 
Platform or another electronic form authorized by the Contracting 
Officer.
    Payment request means any request for contract financing payment 
or invoice payment submitted by the Contractor under this contract.
    (b)(1) The Contractor shall submit invoices using the electronic 
form invoicing program Invoice Processing Platform (IPP), which is a 
secure web-based service provided by the U.S. Treasury that more 
efficiently manages government invoicing.
    (2) The Contractor's Government Business Point of Contact (as 
listed in System for Award Management (SAM)) will receive 
registration/enrollment instructions via email from the IPP. 
Registration is free and the Contractor must register within 3 to 5 
days of receipt of such email from IPP.
    (3) Contractor assistance with enrollment can be obtained by 
contacting the IPP Production Helpdesk via email at 
IPPCustomerSupport@fiscal.treasury.gov or by telephone at (866) 973-
3131.
    (c) If the Contractor is unable to comply with the requirement 
to use IPP for submitting invoices for payment, the Contractor shall 
submit a waiver request in writing to the Contracting Officer. The 
Contractor may submit an invoice using other than IPP only when--
    (1) The Contracting Officer administering the contract for 
payment has determined, in writing, that electronic form submission 
would be unduly burdensome to the Contractor; and in such cases, the 
Contracting Officer shall modify the contract to include a copy of 
the Determination; or

[[Page 19838]]

    (2) When the Governmentwide commercial purchase card is used as 
the method of payment.
    (d) The Contractor shall submit any non-electronic form payment 
requests using the method or methods specified in the contract.
    (e) Invoices submitted through IPP will be either rejected, or 
accepted and paid, in their entirety, and will not be paid on a 
partial basis.
    (f) In addition to the requirements of this clause, the 
Contractor shall meet the requirements of the appropriate payment 
clauses in this contract when submitting payment requests.
    (g) If there are any additional invoice instructions then please 
insert them below:

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(End of clause)

[FR Doc. 2021-07580 Filed 4-14-21; 8:45 am]
BILLING CODE 6560-50-P


