13.403
Preparation and execution of orders
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.