52.232-33
Payment by Electronic Funds Transfer-System for Award Management
Contractors must maintain accurate EFT information in SAM to ensure timely government payments and avoid payment suspensions or errors.
Overview
FAR 52.232-33 requires that all payments under government contracts be made by Electronic Funds Transfer (EFT) using the information provided in the System for Award Management (SAM). This clause outlines the procedures, responsibilities, and liabilities for both the government and contractors regarding EFT payments, including what happens if EFT is not possible, how to handle incorrect or changed EFT information, and the process for assignment of claims.
Key Rules
- Mandatory EFT Payments
- All payments must be made by EFT using the contractor’s SAM information, unless EFT is not possible.
- Alternative Payment Methods
- If EFT cannot be used, contractors must accept checks or request a payment extension.
- Contractor’s Responsibility for EFT Information
- Contractors must keep their EFT information in SAM current and accurate.
- Suspension of Payment for Incorrect EFT Info
- Payments may be suspended if SAM information is incorrect, and invoices will not be considered proper until corrected.
- Liability for Payment Errors
- The government is liable for errors if it uses correct info incorrectly; the contractor is liable if errors result from incorrect or recently changed info.
- Assignment of Claims
- Assignees must register in SAM and receive payment by EFT; improper assignments or incorrect recipient info can suspend payments.
- Payment Information Delivery
- The government will provide payment information in a suitable format but does not guarantee specific formats or methods.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify payment procedures.
- Contractors: Maintain accurate EFT info in SAM, promptly update changes, and ensure assignees comply with registration and EFT requirements.
- Agencies: Oversee payment processes, manage payment information delivery, and enforce compliance with prompt payment rules.
Practical Implications
- This clause ensures faster, more secure payments and reduces administrative errors. Contractors must be diligent in maintaining SAM records, as payment delays or errors due to incorrect info are their responsibility. Failure to comply can result in suspended payments and administrative complications, especially with assignments of claims or recent changes to EFT data.