Electronic Funds Transfer
FAR Subpart 32.11 mandates electronic funds transfer as the standard method for government contract payments, requiring contractors to provide and protect accurate EFT information.
Overview
FAR Subpart 32.11 establishes the requirements and procedures for using Electronic Funds Transfer (EFT) as the primary method for government contract payments. It outlines statutory mandates, defines key terms, and specifies when and how EFT must be used. The subpart covers the protection of sensitive EFT information, the assignment of claims, acceptable EFT mechanisms, and the process for submitting and updating payment information. It also addresses the use of Governmentwide commercial purchase cards as a payment method and details the solicitation provisions and contract clauses that must be included to ensure compliance. The subpart is designed to streamline payment processes, enhance security, and ensure timely and accurate payments to contractors.
Key Rules
- EFT as Primary Payment Method
- Government payments under contracts must generally be made via EFT unless an exception applies.
- Protection of EFT Information
- Contractors and agencies must safeguard sensitive EFT data to prevent unauthorized access or disclosure.
- Submission of EFT Information
- Offerors and contractors are required to provide accurate EFT information for payment processing.
- Assignment of Claims
- Procedures are outlined for assigning payment claims when EFT is used.
- Use of Governmentwide Commercial Purchase Card
- Specifies when and how purchase cards may be used as an alternative payment method.
- Required Clauses
- Contracts must include specific clauses related to EFT payment requirements.
Responsibilities
- Contracting Officers: Ensure contracts include appropriate EFT clauses, verify receipt of EFT information, and protect sensitive data.
- Contractors: Submit and update accurate EFT information, comply with data protection requirements, and accept payment via EFT or approved alternatives.
- Agencies: Oversee EFT implementation, maintain secure payment systems, and monitor compliance with statutory and regulatory requirements.
Practical Implications
- This subpart exists to modernize and secure government payments, reducing delays and errors associated with manual processes.
- Contractors must be diligent in providing and updating EFT information to avoid payment disruptions.
- Failure to protect EFT data or comply with submission requirements can result in delayed payments or noncompliance findings.