32.903
Responsibilities
Agencies and contracting officers must establish clear prompt payment procedures and ensure contractors know the applicable payment terms and contacts for invoice status.
Overview
FAR 32.903 outlines the specific responsibilities of agency heads and contracting officers to ensure effective implementation of prompt payment requirements. The section mandates that agencies establish policies and procedures for timely contractor payments, allows for agency-specific standards and procedures, and requires clear communication with contractors regarding payment status. Contracting officers must clearly identify applicable Prompt Payment clauses and food categories in solicitations and contracts, especially when different payment terms apply to various items.
Key Rules
- Agency Policy and Procedures
- Agency heads must create and maintain policies and procedures to implement prompt payment requirements and may set additional standards or adopt unique payment procedures as needed.
- Contractor Communication
- Agencies must inform contractors of payment office contacts for invoice status inquiries.
- Accelerated Payment Methods
- Agencies may authorize accelerated payment methods as specified in federal regulations, with certain limitations.
- Solicitation and Contract Clarity
- Contracting officers must specify which Prompt Payment clauses and food categories apply to each line item when multiple payment terms are present.
Responsibilities
- Contracting Officers: Clearly identify applicable Prompt Payment clauses and food categories for each contract line item; ensure solicitations/contracts reflect these distinctions.
- Contractors: Understand which payment terms and clauses apply to each item; use provided payment office contacts for invoice status.
- Agencies: Develop and maintain prompt payment policies, communicate payment contacts, and ensure compliance with federal payment regulations.
Practical Implications
- This section ensures agencies and contracting officers take proactive steps to facilitate timely payments and transparency for contractors. Failure to clearly specify payment terms or provide payment contacts can lead to payment delays, disputes, or non-compliance with federal regulations.