32.1110
Solicitation provision and contract clauses
Contracting officers must carefully select and insert the appropriate payment clauses to ensure secure, timely, and compliant contract payments, especially regarding electronic funds transfer and third-party arrangements.
Overview
FAR 32.1110 provides detailed instructions for contracting officers on which solicitation provisions and contract clauses to include regarding payment methods, specifically electronic funds transfer (EFT) and third-party payments. The section ensures that contracts specify the correct payment clauses based on the contractor’s registration status in the System for Award Management (SAM), the use of third-party payment methods, nondomestic EFT mechanisms, and multiple payment arrangements. It also addresses the handling of EFT information and privacy requirements for sealed bids.
Key Rules
- EFT Clauses Based on SAM Registration
- Insert 52.232-33 if the contract requires SAM registration, unless exceptions apply. Use 52.232-34 if EFT is required but SAM registration is not.
- Nondomestic EFT Mechanisms
- Use a modified clause if the agency authorizes nondomestic EFT payments.
- Submission of EFT Information
- Insert 52.232-35 if EFT information is to be sent to an office other than the payment office.
- Third-Party Payments
- Insert 52.232-36 for contracts using third-party payment methods, and include the appropriate EFT clause as well.
- Multiple Payment Arrangements
- Use 52.232-37 and all applicable payment clauses if the contract allows for multiple payment methods by delivery order.
- Multiple Disbursing Offices
- Identify the correct EFT clause for each disbursing office and line item.
- EFT Information with Offers
- Insert 52.232-38 if EFT info is required pre-award, and ensure privacy for sealed bids.
Responsibilities
- Contracting Officers: Must select and insert the correct payment clauses based on contract specifics, agency procedures, and payment arrangements. Must ensure privacy of EFT information in sealed bids.
- Contractors: Must comply with EFT information submission requirements and maintain SAM registration if required.
- Agencies: May authorize nondomestic EFT mechanisms and set procedures for timing of EFT information submission.
Practical Implications
- Ensures proper and secure payment methods are established in contracts.
- Reduces payment delays and errors by clarifying requirements.
- Protects sensitive contractor payment information, especially in sealed bids.
- Common pitfalls include failing to insert the correct clauses or mishandling EFT information privacy.