Payment by Electronic Funds Transfer-Other than System for Award Management
Contractors must provide and maintain accurate EFT information to ensure timely government payments under this contract.
Overview
FAR 52.232-34 requires all government payments under the contract to be made by electronic funds transfer (EFT), unless EFT is not possible, in which case alternative payment methods or payment extensions may be used. Contractors must provide accurate EFT information to the designated office by a specified deadline and update it as necessary. The clause details the mechanisms for EFT payments (ACH or Fedwire), the consequences of providing incorrect or outdated EFT information, and the responsibilities of both the government and contractor in the event of payment errors. It also addresses the assignment of claims, liability for changes made by financial agents, and the provision of payment information. The clause ensures prompt payment compliance and outlines the specific data contractors must submit to facilitate EFT payments.
Key Rules
- Mandatory EFT Payments
- All payments are made by EFT unless otherwise specified or not possible.
- Submission and Updating of EFT Information
- Contractors must provide and update EFT information to the designated office by the contract-specified deadline.
- EFT Payment Mechanisms
- Payments may be made via ACH or Fedwire, subject to applicable regulations.
- Suspension of Payment
- Payments may be suspended until correct EFT information is received; prompt payment rules apply.
- Liability for Payment Errors
- Responsibility for payment errors depends on whether the government or contractor provided incorrect EFT information.
- Assignment of Claims
- Assignees must provide EFT information and are subject to the same requirements as contractors.
- Provision of Payment Information
- 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, specify deadlines, and verify receipt of correct EFT information.
- Contractors: Submit accurate and timely EFT information, update as needed, and ensure assignees comply if claims are assigned.
- Agencies: Oversee compliance, process payments via EFT, and manage payment information delivery.
Practical Implications
- This clause streamlines government payments and reduces errors by standardizing EFT use.
- Contractors must be diligent in providing and updating EFT details to avoid payment delays or errors.
- Failure to comply can result in delayed payments, lost funds, or administrative complications, especially if incorrect information is provided or not updated promptly.