Subpart 13.4
Fast Payment Procedure
The Fast Payment Procedure enables quicker payments for low-risk, small-dollar acquisitions, but requires strict adherence to eligibility, documentation, and post-payment accountability.
Overview
FAR Subpart 13.4 establishes the Fast Payment Procedure, a streamlined process for making payments to contractors under certain simplified acquisition conditions. This procedure is designed to expedite payments for supplies and services by allowing payment before government acceptance, provided specific safeguards and conditions are met. The subpart outlines when the procedure can be used, how orders should be prepared and executed, and the required contract clause to ensure compliance and protect government interests.
Key Rules
- General (13.401)
- Introduces the fast payment concept and its intended use for small dollar, low-risk acquisitions.
- Conditions for Use (13.402)
- Specifies the criteria that must be met, such as dollar thresholds, types of supplies/services, and risk mitigation measures (e.g., limited dollar value, local delivery, and minimal inspection requirements).
- Preparation and Execution of Orders (13.403)
- Details the process for issuing orders under the fast payment procedure, including documentation and verification steps.
- Contract Clause (13.404)
- Mandates inclusion of a specific clause in contracts/orders using the fast payment procedure to ensure contractor accountability and government protection.
Responsibilities
- Contracting Officers: Must determine eligibility, ensure compliance with conditions, and include the required clause.
- Contractors: Must deliver supplies/services as specified and comply with fast payment terms, including remedying any deficiencies post-payment.
- Agencies: Oversee proper use of the procedure and monitor for compliance and fraud prevention.
Practical Implications
- The fast payment procedure exists to reduce administrative burden and speed up payments for low-risk, small-value acquisitions.
- It impacts daily contracting by allowing contractors to receive payment more quickly, but requires careful adherence to eligibility and documentation requirements.
- Common pitfalls include misuse for ineligible purchases, inadequate documentation, or failure to address post-payment issues promptly.