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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: February 1, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense; Mandatory Electronic Funds Transfer (EFT) and Central Contractor Registration (CCR)

SOURCE: Under Secretary of Defense (Comptroller) Memorandum, dated December 30, 1999

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: On December 30, 1999, Under Secretary of Defense (Comptroller) William Lynn issued a memorandum to the secretaries of the military departments, the Joint Chiefs of Staff, the other under secretaries of defense, and other high-level DOD officials alerting them that DOD contracting activities are to make sure that the appropriate contract clauses requiring payment by EFT and mandating registration in the CCR database are included in all non-exempt contracts, and that the Defense Finance and Accounting Service (DFAS) will return contracts and invoices that are not in compliance with EFT and CCR requirements.

EFFECTIVE DATES: February 1, 2000.

SUPPLEMENTAL INFORMATION: The Debt Collection Improvement Act of 1996 (Public Law 104-134) required that payments to contractors be made by EFT effective January 1, 1999. To implement this statutory requirement, Federal Acquisition Regulation (FAR) Subpart 32.11, Electronic Funds Transfer, was developed. To comply with the requirements of FAR Subpart 32.11, DOD decided to mandate registration in the CCR database (see Defense FAR Supplement (DFARS) Subpart 204.73, Central Contractor Registration.

"While we have made substantial progress in implementing EFT payments, additional effort is required to fully achieve the Department's goals," writes Under Secretary of Defense (Comptroller) William Lynn. "Therefore, I have instructed the Defense Finance and Accounting Service to return contracts and invoices that are not in compliance with current requirements, along with a request for corrective actions, effective February 1, 2000, as well as to take other specific actions." Those specific actions are:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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