DOD seeks standardized billing and payment apps

Citing difficulties in processing payments to contractors, Defense Department procurement director Deidre Lee last month told Defense agency chiefs and acquisition officials to avoid errors and inconsistencies.

In a June 11 memorandum, Lee urged the officials to continue efforts to improve the billing and payment process'especially in using electronic transactions. 'The way we structure contract line items must be consistent with the way the contractor will ship and bill for the items, or payment delays may result,' Lee said.

Restructuring needed

The need for restructuring is crucial as Defense continues to automate its procurement processes, she said. 'We cannot afford to use scarce human resources to manually reconcile inconsistent information or to search for missing information,' Lee said.

Lee pointed to DOD's EMall, a Web portal for e-commerce, as a resource contract officers can use to find out if what they need is available.

The memo came a few weeks after DOD sought public comment on a proposal to amend the Defense Federal Acquisition Regulation Supplement to require contractors to submit invoices electronically.

DOD must add the new clause to implement Section 1008 of the fiscal 2001 National Defense Authorization Act.

The proposal would require vendors to submit invoices one of three ways:
  • Defense Finance and Accounting Service's Web Invoicing System

  • Defense Information Systems Agency's Wide-Area Workflow Receipts and Acceptance site

  • American National Standards Institute's electronic data interchange formats.

The department will accept comments through July 30. Visit and select 2002-D001 from the drop-down menu for the case number field.

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