13.404
Contract clause
Always include the 52.213-1 Fast Payment Procedure clause in contracts using fast payment procedures to ensure compliance and expedite payments.
Overview
FAR 13.404 requires contracting officers to include the clause at 52.213-1, Fast Payment Procedure, in solicitations and contracts when the fast payment procedure is intended to be used, as outlined in FAR 13.402. This clause facilitates expedited payment to contractors for supplies or services under certain conditions, streamlining the payment process. For Blanket Purchase Agreements (BPAs), the clause can be included either in the BPA itself or in individual orders issued under the BPA, at the contracting officer's discretion. The regulation ensures that all parties are aware of and agree to the terms governing fast payments, which is critical for compliance and efficient contract administration.
Key Rules
- Clause Inclusion Requirement
- The 52.213-1 Fast Payment Procedure clause must be inserted in contracts and solicitations when fast payment procedures apply.
- BPA Flexibility
- For BPAs, the clause may be included in the BPA or in orders placed under the BPA, based on the contracting officer's choice.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included when fast payment procedures are used and determine placement for BPAs.
- Contractors: Must comply with the terms of the Fast Payment Procedure clause when it is included in their contract or order.
- Agencies: Should oversee that the clause is properly used and that fast payment procedures are followed as intended.
Practical Implications
- This section ensures that the fast payment process is clearly established in contracts, reducing payment delays and administrative burdens.
- Contractors benefit from faster payments but must adhere to the specific requirements of the clause.
- Omitting the clause when required can result in noncompliance and payment processing issues.