On October 4, 2021, the Department of Health and Human Services (HHS) proposed an amendment to its Federal Acquisition Regulation (FAR) Supplement to support the HHS Electronic Invoicing Implementation Project and HHS’s transition to the Department of the Treasury’s Invoice Processing Platform. This rule would add HHS Acquisition Regulation (HHSAR) Subpart 332.70 (which is comprised of HHSAR 332.7000 through 332.7003) Electronic Submission and Processing of Payment Requests to provide policies and procedures for these requests.
Key Takeaways from Proposed Rule
A “payment request”, as defined in the proposed subpart, is a bill, voucher, invoice, or request for contract financing payment with associated supporting documentation. The applicable payment clause must be included in the contract and the payment request must comply with the requirements in FAR 32.905(b) Content of Invoices.
Contracts must require electronic submission of payment requests through the inclusion of HHSAR 352.232-71, Electronic submission of payment requests, unless purchases are made with a Government-wide commercial purchase card and some classified contracts when electronic submission and processing could compromise classified information or national security.
The contracting officer can require another method for submitting a payment request, but they must make a written determination that:
- HHS is unable to receive electronic payment requests or provide acceptance electronically;
- The contractor has demonstrated that electronic submission would be unduly burdensome; or
- The contractor is in the process of transitioning to electronic submission of payment requests, but needs additional time to complete such transition.
We plan to submit comments and suggest you do the same. Comments on the rule can be submitted through the Federal eRulemaking Portal. Search for “HHSAR 332.70”, select “Comment” and follow the instructions to submit a comment. Comments are due by November 15, 2021.
Redstone GCI is Here to Help
Redstone GCI assists contractors throughout the U.S. and internationally with understanding the Government’s expectations and supporting contractors with submission of payment requests, as well as navigating the Government regulation landscape.
Adam is a Senior Consultant with Redstone Government Consulting, Inc. based in our firm’s Huntsville office. Adam supports our government compliance group and his role includes production of pricing models for cost volume proposals, the preparation of complex incurred cost submissions, data modeling and analysis related to indirect rates, and unallowable cost testing. Adam works closely with our directors and managers in performing testing and assessments of DFARS Business Systems, specializing in the accounting system. He also works with other team members to assist clients with compliance requirements of the U.S. Government. Education Adam holds a B.S. degree in Economics from The University of Alabama with minors in Computing Technology & Applications and Management Communication.