13.401
General
The fast payment procedure allows contractors to be paid before government verification, but requires them to certify delivery and correct any supply issues or risk debt recovery.
Overview
FAR 13.401 outlines the general principles of the fast payment procedure, which allows contractors to receive payment for supplies before the government has verified receipt and acceptance. This expedited process is permitted under specific conditions and relies on the contractor's certification that supplies have been delivered to a designated location and that any issues with delivery, damage, or nonconformance will be resolved by the contractor. The contracting officer is responsible for determining any debts owed to the government if the contractor fails to fulfill these obligations, referencing FAR 32.602 and 32.603 for debt determination procedures.
Key Rules
- Fast Payment Authorization
- Contractors may be paid before government verification of receipt and acceptance, based on their certified invoice.
- Contractor Certification
- The invoice must certify that supplies have been delivered to the appropriate location and that the contractor will address any delivery or quality issues.
- Debt Determination
- The contracting officer determines the amount of debt if the contractor fails to replace, repair, or correct supplies as required.
Responsibilities
- Contracting Officers: Ensure fast payment procedures are used appropriately, determine debts for noncompliance, and reference FAR 32.602 and 32.603 as needed.
- Contractors: Certify delivery and agree to correct any deficiencies or losses in supplies.
- Agencies: Oversee compliance with fast payment procedures and ensure proper debt recovery if necessary.
Practical Implications
- This section enables faster payments to contractors, improving cash flow and efficiency for small purchases.
- Contractors must be diligent in fulfilling delivery and quality obligations, as payment is made before government verification.
- Failure to comply can result in debt recovery actions by the government, making accurate certification and prompt correction of issues critical.