BILLING CODE 6820-61
GENERAL SERVICES ADMINISTRATION
48 CFR Parts 532 and 552
[GSAR Case 2022-G513; Docket No. GSA-GSAR-2023-0008;
Sequence No. 1]
RIN 3090-AK55
General Services Administration Acquisition Regulation;
Removing the GSA Payments Clause for Non-Commercial
Contracts
AGENCY: Office of Acquisition Policy, General Services
Administration (GSA).
ACTION: Final rule.
SUMMARY: The General Services Administration is amending
the General Services Administration Acquisition Regulation
(GSAR) to remove clause 552.232-1 Payments. This clause
requires the Government to pay a contractor without
submission of an invoice or voucher for non-commercial
fixed price contracts for supplies or services.
DATES: Effective: [INSERT DATE 30 DAYS AFTER DATE OF
PUBLICATION IN THE FEDERAL REGISTER].
FOR FURTHER INFORMATION CONTACT: For clarification of
content, contact Ms. Taylor McDaniels, Procurement Analyst;
Mr. J. Curtis Hauschildt, Procurement Analyst; or Mr. Bryon
Boyer, Procurement Analyst, at gsarpolicy@gsa.gov or 817850-5580. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat

Division at GSARegSec@gsa.gov or 202-501-4755. Please cite
GSAR Case 2022-G513.
SUPPLEMENTARY INFORMATION:
I. Background
This final rule amends the General Services
Administration Acquisition Regulation to remove clause
552.232-1 Payments. The General Services Administration
conducts routine reviews of its acquisition regulations to
identify outdated content and to ensure there is no
unnecessary duplication of or conflict with the Federal
Acquisition Regulation (FAR), pursuant to FAR 1.304.
Through one of these reviews in Fiscal Year (FY) 2022, GSA
identified that GSAR clause 552.232-1 Payments conflicts
with FAR clause 52.232-1 Payments and should be removed. As
this GSAR clause is over 10 years old, GSA does not have
any historical information that explains why the GSAR
clause was initially created. This rule seeks to rectify
the issue.
II. Discussion and Analysis
A. Summary of significant changes
There are no changes from the proposed rule in this
final rule.
B. Analysis of public comments
A proposed rule was submitted for public comment on
February 28, 2023, and no comments were received by the
closing date of May 1, 2023.

C. Expected Cost Impact to the Public
This rule removes one conflicting GSAR clause
regarding payments for non-commercial fixed price contracts
for supplies or services. GSA believes the exception to
invoicing in the GSAR clause is not currently followed, and
applicable contractors are already following the invoice
requirements of the FAR clause. However, GSA conducted the
analysis below demonstrating that the expected impact of
this rule is not significant.
With this change, contractors with non-commercial,
fixed-price, contracts for supplies or services will now
have to submit proper invoices in order to receive payments
in accordance with FAR 52.232-1 Payments. Information
generated from the System for Award Management (SAM.gov)
for FY 2023 reflects approximately 142,120 GSA contracts
were awarded for non-commercial fixed price contracts for
supplies or services across approximately 735 separate
contractors.
Consistent with the methodology and analysis for the
FAR clause information collection1, the affected contracts
on average are estimated to have 6 invoices per contract
per year, for a total of 852,720 total responses. Each
response is estimated to require 0.25 hours, for a total of
213,180 hours of total burden. Applying a GS-12 pay rate,

Office of Management and Budget Control Number 9000-0073, Certain
Federal Acquisition Regulation Part 32 Requirements.

the total cost is estimated to be $12,517,9302, or
approximately $17,031 per contractor which is not
significant.
III. Executive Orders 12866, 13563 and 14904
Executive Order (E.O.) 12866 (Regulatory Planning and
Review) directs agencies to assess all costs and benefits
of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and
equity).

E.O. 13563 (Improving Regulation and Regulatory

Review) emphasizes the importance of quantifying both costs
and benefits, of reducing costs, of harmonizing rules, and
of promoting flexibility. E.O. 14094 (Modernizing
Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing
contemporary regulatory review established in E.O. 12866
and E.O. 13563.

OIRA has determined this rule to not be a

significant regulatory action and, therefore, is not
subject to review under section 6(b) of E.O. 12866,
Regulatory Planning and Review, dated September 30, 1993.
IV. Congressional Review Act
OIRA has determined that this rule is not a major rule
under 5 U.S.C. 804(2). Subtitle E of the Small Business

The hourly rate for GS-12 is $58.72 ($43.10 as a GS-12/step 5 salary
OPM 2023 pay scale Rest of US, with a 36.25% fringe factor pursuant to
OMB memorandum M-08-13).

Regulatory Enforcement Fairness Act of 1996 (codified at 5
U.S.C. 801–808), also known as the Congressional Review Act
or CRA, 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. The General Services Administration will
submit a report containing this rule and other required
information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United
States. A major rule under the CRA cannot take effect until
60 days after it is published in the Federal Register.
V. Regulatory Flexibility Act
GSA does not expect this rule to have a significant
economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5
U.S.C. 601, et seq., because this is a noncontroversial
action that only impacts the agency’s internal operating
procedures, and GSA anticipates no significant adverse
comments. Therefore, a Final Regulatory Flexibility
Analysis has not been prepared.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35)
does apply; however, these changes to the GSAR do not
impose additional information collection requirements to
the paperwork burden previously approved under the Office

of Management and Budget Control Number 9000-0073, Certain
Federal Acquisition Regulation Part 32 Requirements.
List of Subjects in 48 CFR Parts 532 and 552
Government procurement.

Jeffrey A. Koses,
Senior Procurement Executive,
Office of Acquisition Policy,
Office of Government-wide Policy,
General Services Administration.

Therefore, GSA amends 48 CFR parts 532 and 552 as set
forth below:
1. The authority citation for 48 CFR parts 532 and 552
continues to read as follows:
AUTHORITY: 40 U.S.C. 121(c).
PART 532—CONTRACT FINANCING
2. Revise section 532.111 to read as follows:
532.111 Contract Clauses for non-commercial purchases.
Construction contracts.

Insert the clause at 552.232-5,

Payments under Fixed-Price Construction Contracts, in
solicitations and contracts when a fixed-price construction
contract is contemplated.
PART 552—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
552.232-1 [Removed and Reserved]
3. Remove and reserve section 552.232-1.
552.232-5 [Amended]
4. Amend section 552.232-5 by removing from the
introductory text “552.111(b)” and adding “532.111” in its
place.
[FR Doc. 2024-14352 Filed: 7/2/2024 8:45 am; Publication Date: 7/3/2024]