32.900
Scope of subpart
FAR 32.900 establishes the foundation for prompt payment requirements in federal contracts, ensuring contractors are paid on time according to OMB regulations.
Overview
FAR 32.900 defines the scope of Subpart 32.9, which establishes the policies, procedures, and contract clauses necessary to implement the Office of Management and Budget (OMB) prompt payment regulations found at 5 CFR Part 1315. This section serves as the entry point for understanding how federal contracts must comply with prompt payment requirements, ensuring that contractors are paid in a timely manner for goods and services provided to the government. The subpart covers all aspects of prompt payment, including timelines, interest penalties for late payments, and required contract language.
Key Rules
- Implementation of OMB Prompt Payment Regulations
- The subpart enforces the requirements of 5 CFR Part 1315, which governs prompt payment to contractors.
- Prescribes Policies, Procedures, and Clauses
- Establishes the necessary framework for agencies and contractors to comply with prompt payment rules in federal contracts.
Responsibilities
- Contracting Officers: Must include appropriate prompt payment clauses and ensure compliance with OMB regulations.
- Contractors: Should understand their rights and obligations regarding payment timelines and interest penalties.
- Agencies: Responsible for timely payment and adherence to regulatory requirements.
Practical Implications
- This section ensures contractors are paid promptly, reducing financial risk and improving cash flow.
- It provides a regulatory basis for contractors to claim interest on late payments.
- Failure to comply can result in disputes, penalties, and strained contractor-government relationships.