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Showing results for tags 'Prompt Payment'.
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My basic question is: What date should be used to determine when the 30-day clock starts for invoice payment? I have a CPFF contract that includes the Prompt Payment Clause and it also includes a local clause with the language "In accordance with the Prompt Payment Act (FAR 52.232-25), payment will normally be made within thirty (30) days after receipt of proper invoice or acceptance of supplies/services, whichever is later". The Prompt Payment Act states: "The due date for making invoice payments by the designated payment office shall be the later of the following two events: (A) The 30th day after the designated billing office receives a proper invoice from the Contractor (except as provided in paragraph (a)(1)(ii) of this clause); (B ) The 30th day after Government acceptance of supplies delivered or services performed". Per the FAR the definition of designated billing office is the office or person designated in the contract where the contractor first submits invoices. It is designated in the contract that invoices are to be submitted to the KO and the COR. Also, since this is a CPFF contract the invoices are submitted to DCAA after they have been approved by the COR. It is the opinion of the Contractor and myself if the Government accepts the invoice the "acceptance" is, in fact, the actual date the COR received the invoice and not the date he/she actually signs the invoice. So if the invoice is dated the 4th and date stamped by the COR on the 5th day of the month and after their review they sign it on the 10th then DFAS should start the 30-day clock from the 5th and not the 10th. For this scenario I am not including the time for DCAA to review or the actual date I have faxed the invoice to DFAS since our position is DFAS should start the 30-day clock after Government acceptance which is the 5th. Our "definition" of acceptance is based on the understanding that when you accept the invoice as proper that date is the date you received the invoice and not the date you signed it. The reason is why should the contractor be penalized the days the COR has to review the invoice. If he/she accepts the original invoice he/she is accepting the date it was received and not the date it was finally signed.
I work for a Large Business who is prime on a government contract. One of our major subcontractors is a small business. I am being asked to request inclusion of 52.232-40 in our contract. I know it's now required for all solicitations/orders, however, I would like feedback on what I believe is a misinterpretation of the clause. My program office feels that inclusion of the clause allows the government to provide accelerated payments to us as the prime that we may in turn accelerate invoice payments to our small business subcontractor. I disagree. I believe the purpose is to notify the Prime that SHOULD the government accelerate its payments that it, must in turn, accelerate payments to the small business. Even if it were not now a required clause, inclusion doesn't help us as Prime at all. It's designed to protect the small business subcontractor as it should. Anyway, read a few memos, M-12-16; M-13-15; and M-14-10 and it looks like the government plans to accelerate payments whenever possible at least through December 2016. With that, I will advise (if you all agree) that M-14-10 helps to improve the likelihood that we as Prime are paid within 15 days; there is no clause that would guarantee accelerated payment to us under these circumstances; and 52.232-40 is included in the contract under the Christian Doctrine and therefore our subcontractor should rest assured that they are protected,