13.403 Preparation and execution of orders
Source: FAR 13.403 on acquisition.gov
FAR 13.403 mandates specific shipping, invoicing, and notification requirements for all fast payment orders to ensure prompt payment and effective issue resolution.
Overview
FAR 13.403 outlines the mandatory requirements for preparing and executing orders under the fast payment procedure, which is designed to expedite payment for supplies. This section specifies what must be included in priced or unpriced contracts, purchase orders, or blanket purchase agreements (BPAs) when using fast payment methods. The regulation ensures that shipping, invoicing, and notification procedures are clearly defined to facilitate prompt payment and address issues such as nonreceipt, damage, or nonconformance of supplies.
Key Rules
- Transportation or Postage Prepaid
- All orders must require that supplies be shipped with transportation or postage prepaid by the supplier.
- Invoice Submission
- Invoices must be sent directly to the designated finance office or, for unpriced purchase orders, to the contracting officer.
- Consignee Notification Statement
- The consignee’s copy of the order must include a statement requiring prompt notification to the purchasing office if supplies are not received, are damaged, or do not conform, ideally within 60 days of the delivery date.
Responsibilities
- Contracting Officers: Ensure all fast payment orders include the required shipping, invoicing, and notification provisions.
- Contractors: Ship supplies prepaid, submit invoices as directed, and provide the required consignee notification statement.
- Agencies: Monitor compliance and respond to notifications of nonreceipt, damage, or nonconformance.
Practical Implications
- This section exists to streamline payment and ensure accountability in the fast payment process.
- It impacts daily contracting by requiring clear instructions and documentation on orders.
- Common pitfalls include missing required statements or failing to direct invoices properly, which can delay payment or resolution of supply issues.
Priced or unpriced contracts, purchase orders, or BPAs using the fast payment procedure shall include the following:
(a) A requirement that the supplies be shipped transportation or postage prepaid.
(b) A requirement that invoices be submitted directly to the finance or other office designated in the order, or in the case of unpriced purchase orders, to the contracting officer (see 13.302-2(c)).
(c) The following statement on the consignee’s copy:
Consignee’s Notification to Purchasing Activity of Nonreceipt, Damage, or Nonconformance
The consignee shall notify the purchasing office promptly after the specified date of delivery of supplies not received, damaged in transit, or not conforming to specifications of the purchase order. Unless extenuating circumstances exist, the notification should be made not later than 60 days after the specified date of delivery.