Attachment 1F - DPM Third party payment.pdf

Defense Transportation Regulation - Part IV Personal Property

15 January 2019

ATTACHMENT 1F

DIRECT PROCUREMENT METHOD (DPM) THIRD PARTY PAYMENT SYSTEM

(TPPS)

A. INTRODUCTION

This attachment describes the DPM Electronic Bill Payment (EBP) Figure G7-1 guidelines and procedures for electronic bill payment processes using the Web-Enabled Transportation Operational Personal Property Standard System (eTOPS). These processes use the Department of Defense (DoD) TPPS as a payment tool to reimburse DPM contractors for services rendered; provide information visibility for stakeholders; improve the Defense Finance and Accounting Service (DF AS) and Finance Center (FINCEN) payment and collection process; and reduce paper documentation. This payment process uses the Contractor Self Invoicing methodology requiring the contractor to enter invoicing data through the TPPS user interface. Invoices are complete when the DPM contractor has provided the Personal Property Shipping Office (PPSO) with the weight tickets and supporting documentation. When the contractor enters their invoices using the TPPS user interface a corresponding government order is automatically created. Each item will be placed in an approval required status pending Notice of Completion (NOC) and the PPSO approval action. TPPS then processes a payment to the DPM contractor, normally within 72 hours. Invoice audit trail, payment tracking and transaction visibility is achieved. The TPPS maintains a funding Chart of Account

(COA) sourced by the DFAS Transportation Global Edit Table-Revised (TGET-R) and uses the table to retrieve, validate, and edit Lines of Accounting (LOA) containing orders processed by the PPSO.

There is no data feed from eTOPS. PPSOs are required to transcribe information from orders into the applicable transportation system.

B. SCOPE

These procedures apply to all the Services' and Coast Guard's PPSOs and participating commercial contractors. In order to participate in the Defense Personal Property Program, DPM contractors must have an active contract that lists the TPPS contractor as the payer (box 18) and have a trading partner agreement on file with the DoD TPPS provider. All Schedule I, II and III services provided on a DPM service order are part of these procedures.

C. THE DPM ELECTRONIC PAYMENT PROCESS

The DPM contractor enters invoice data using the TPPS user interface throughout the month. At the end of the billing cycle, the TPPS electronically generates monthly summary invoices, which show all payments to the DPM contractors made by the TPPS provider on behalf of the DoD and credits to the DoD. The monthly summary statement is made available for online viewing and certification by the PPSO Certifying Officer (CO). The monthly summary statement certification triggers the TPPS to send a copy of the Electronic Data Interchange (EDI) data feed to the DFAS. The DFAS pre validates the certification and processes the monthly summary statement for payment (reimbursement) back to the TPPS provider. All invoices entered by the DPM contractor automatically go into "Approval Required" status for PPSO review. The PPSO can dispute the DPM contractor's invoice by assigning a "Hold" status to the invoice and providing reason(s). When an invoice is placed in a "Hold" status, the DPM contractor is notified via the TPPS. Negotiation and resolution between the DPM contractor and the PPSO must be achieved for all "Hold" status invoices before they are approved in the TPPS. The prompt payment interest (PPI) "clock" begins when the DPM contractor successfully submits the Notice of Service Completion (NOSC) in the TPPS. The "clock" stops during the dispute "Hold" status process as well as for rejected invoices.

IV-G7-1