invoice illustration

Administration Pushes All-Electronic Invoicing by 2018

In a memo issued in mid-July, the Administration announced a new piece of the President's Management Agenda - to push all agencies to utilize electronic invoicing to pay contractors by the end of FY2018.

The government processes over 19 million invoices each year, but only 40% are processed with electronic invoices, with the remaining balance using a mix of manual and electronic processes.

Non-electronic invoicing processes "provide little visibility to businesses and can result in tax dollars being used for late payment fees rather than to support critical agency missions," according to Dave Mader, Acting Deputy Director for Management at the Office of Management and Budget (OMB) and Anne Rung, Administrator for Federal Procurement Policy, in the memo "Improving Government Efficiency and Saving Taxpayer Dollars Through Electronic Invoicing" (M-15-19).

The memo directs agencies to transition their invoicing to one of the following:

  • Migration to a designated Federal Shared Service Provider (FSSP) and adoption of the FSSP electronic invoicing solution;

  • Use of an OMB approved electronic invoicing solution that aligns with agency mission and support requirements; or

  • Cessation of any investments in new electronic invoicing solutions.

All FSSPs and other electronic invoice solution providers are directed to 1) integrate with the Integrated Award Environment (IAE) systems, including the System for Award Management (SAM), for contractor information and to reduce vendor burden; 2) develop electronic interfaces like web-services or Application Programming Interfaces (APIs); and mitigate risks associated with the use of proprietary or third party supported systems.

To make this all happen, OMB is directed to work with the Chief Financial Officers (CFOC) and Chief Acquisition Officers (CAOC) Councils, Treasury's Office of Financial Innovation and Transformation (FIT), and FSSPs.

Agencies are encouraged to use https://community.max.gov/x/FACBM for assistance in implementing the memo.

Posted in General News

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