52.232-2
Payments under Fixed-Price Research and Development Contracts
Contractors under fixed-price R&D contracts are paid only for work that is delivered, accepted, and properly invoiced, with payment timing and deductions governed by contract terms.
Overview
FAR 52.232-2 outlines the payment procedures for contractors performing under fixed-price research and development (R&D) contracts. This clause requires the government to pay contractors the agreed-upon prices for work that has been delivered, rendered, and accepted, minus any contractually specified deductions. Payment is contingent upon the contractor submitting proper invoices or vouchers, and unless otherwise stated, payment is made upon acceptance of any separately priced portion of the work. Agencies may modify payment due dates according to their own regulations, but the core requirement is prompt payment for accepted deliverables.
Key Rules
- Submission of Proper Invoices or Vouchers
- Contractors must submit accurate and complete invoices or vouchers to receive payment.
- Payment for Accepted Work
- The government pays only for work that has been delivered or rendered and formally accepted.
- Deductions
- Any deductions specified in the contract will be subtracted from the payment amount.
- Payment Timing
- Unless otherwise specified, payment is made upon acceptance of any separately priced portion of the work.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify acceptance of deliverables before authorizing payment.
- Contractors: Submit proper invoices or vouchers and ensure deliverables meet acceptance criteria.
- Agencies: May set specific payment due dates and must process payments in accordance with their regulations.
Practical Implications
- This clause ensures contractors are paid promptly for accepted R&D work, supporting cash flow and project continuity.
- Contractors must pay close attention to invoice accuracy and contractually defined acceptance criteria to avoid payment delays.
- Common issues include incomplete invoices or disputes over acceptance, which can delay payment.