8.405-7
Payment
Agencies may use any authorized payment method, including the Governmentwide commercial purchase card, for Federal Supply Schedule orders, but must comply with related regulations.
Overview
FAR 8.405-7 addresses the methods by which agencies can make payments for oral or written orders placed under Federal Supply Schedules. The regulation allows agencies flexibility in payment methods, including the use of the Governmentwide commercial purchase card, provided that all payments are made through authorized means. The section also references FAR 32.1108(b)(2) for additional requirements or restrictions related to purchase card use. This provision ensures that agencies can efficiently process payments for schedule orders while maintaining compliance with broader payment regulations.
Key Rules
- Authorized Payment Methods
- Agencies may use any authorized payment method for orders, including oral and written orders.
- Governmentwide Commercial Purchase Card
- The use of the Governmentwide commercial purchase card is specifically permitted, subject to additional requirements in FAR 32.1108(b)(2).
Responsibilities
- Contracting Officers: Ensure payments are made using authorized methods and comply with any additional requirements for purchase card use.
- Contractors: Accept authorized payment methods as specified in the order and be aware of purchase card acceptance requirements.
- Agencies: Oversee payment processes and ensure compliance with applicable payment regulations.
Practical Implications
- This section provides agencies with flexibility in payment processing, which can expedite order fulfillment and reduce administrative burden.
- Contractors should be prepared to accept various payment methods, especially the Governmentwide commercial purchase card.
- Failure to comply with authorized payment methods or related requirements may delay payment or result in noncompliance findings.