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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: August 21, 2001

SUBJECT: Department of Defense (DOD); Delay in Electronic Submission and Processing of Claims for Contract Payments

SOURCE: Federal Register, August 21, 2001, Vol. 66, No. 162, page 43841

AGENCIES: Department of Defense (DOD)

ACTION: Notice of Implementation Delay

SYNOPSIS: The Secretary of Defense is announcing a delay in the implementation of Section 1008 of the National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), which provides that the Secretary of Defense must require a contractor to submit electronically, and DOD to process electronically, any claim for payment under a DOD contract. This delay is from June 30, 2001, to October 1, 2002.

DATES: Implementation of Section 1008 is delayed from June 30, 2001, to October 1, 2002.

FOR MORE INFORMATION CONTACT: Robert Bemben, OUSD(AT&L)DP(EBI), Room 3C128, 3060 Defense Pentagon, Washington, DC 20301-3060; 703-695-1097; fax: 703-695-7596.

SUPPLEMENTAL INFORMATION: Section 1008(a) of Public Law 106-398 requires 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. Section 1008 also requires DOD to transmit any supporting documentation electronically within DOD. However, Section 1008 permits the Secretary of Defense to delay the implementation date to no later than October 1, 2002, if the Secretary finds that it is impracticable to implement the requirement until that later date.

The Secretary of Defense has determined that it is impracticable to implement Section 1008 prior to October 1, 2002, because DOD does not have the capability to receive all contractor claims for payment electronically, nor does it have the capability to process all claims and supporting documentation electronically. In addition, DOD must publish changes to the Defense Federal Acquisition Regulation Supplement to implement this requirement, and this has not been done yet.

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

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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