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Subpart 532.5—Progress Payments Based
532.111 Contract clauses.
532.501 General. 532.501–2 Unusual progress payments. 532.501-70 Use of benchmarks with progress
payments based on costs. 532.502 Preaward matters. 532.502–2 Contract finance office clearance. 532.502-4 Contract clauses. 532.503–5 Administration of progress pay
ments. 532.503-6 Suspension or reduction of pay
ments. 532.503–9 Liquidation rates--alternate meth
Subpart 532.6—Contract Debts
532.601 Definitions. 532.606 Debt determination and collection. 532.606–70 Referral of delinquent debts.
(a) Discounts for prompt payment. The clause at 552.232–8 must be included in multiple award schedule solicitations and resultant contracts, instead of the clause at FAR 52.232–8. (See 515.608-71 for an explanation concerning this deviation.)
(b) Invoice requirements. The contracting officer shall insert a clause substantially the same as the clause at 552.232–72, Invoice Requirements, in all solicitations and contracts for supplies, services, construction or the acquisition of leasehold interests in real property that require the submission of invoices for payment. The contracting officer should delete subparagraph (b) of the clause when an Accounting Control Transaction (ACT) number is not required for payment.
(c) Adjusting payments. The contracting officer shall insert the clause at 552.232–78, Adjusting Payments, in all solicitations and contracts for recurring building services expected to exceed the simplified acquisition threshold.
(d) Final payment. The contracting officer shall insert the clause at 552.23279, Final Payment, in all solicitations and contracts for recurring building services expected to exceed the simplified acquisition threshold.
Subpart 532.7-Contract Funding
532.700 Scope. 532.705 Contract clauses. 532.705–1 Clauses for contracting in advance
Subpart 532.8-Assignment of Claims
532.805 Procedures. 532.806 Contract clauses.
Subpart 532.9—Prompt Payment
532.902 Definitions. 532.905 Invoice payments. 532.905–70 Certification of payment to sub
contractors and suppliers. 532.905–71 Final payment. 532.908 Contract clause.
[54 FR 26541, June 23, 1989, as amended at 60 FR 42804, Aug. 17, 1995]
Subpart 532.70-Authorizing Payment by Credit Card Under Schedule Contracts
532.112 Payment of subcontractors
under contracts for non-commercial items.
532.7001 Definition. 532.7002 Solicitation requirements. 532,7003 Contract clause.
532.112-1 Subcontractor assertions of
Subpart 532.71-Payments Under
Contracts Subject to Audit
532.7101 General. 532.7102 Submission and processing of in
voices or vouchers. 532.7103 Action upon receipt of an audit re
port. 532.7104 Suspension
and disapproval of amounts claimed.
Contracting officers who determine that a certification of payment of a subcontractor or supplier under FAR 32.112–1 is inaccurate in any material respect shall report the matter to the Office of Inspector General. If appropriate, the Office of Inspector General will forward a report and recommendation to the Department of Justice.
AUTHORITY: 40 U.S.C. 486(c).
SOURCE: 54 FR 26541, June 23, 1989, unless otherwise noted.
[61 FR 1151, Jan. 17, 1996]
532.503–5 Administration of progress
payments. The contracting officer must ensure that the contract finance office (1) has adequate administrative and fiscal procedures to accomplish the fiscal aspects of FAR 32.503–5, (2) provides the contracting officer with the date and amount of each progress payment to a contractor, and (3) provides the contracting officer with written recommendations whenever findings are made which warrant action by the Government.
532.501-70 Use of benchmarks with
progress payments based on costs. (a) In unusual circumstances, it may be desirable to provide for the achievement of specified benchmarks such as submission and acceptance of preproduction or pilot model before making progress payments based on costs. When progress payments are conditioned upon achievement of specified benchmarks during performance of the contract, the HCA must make a written determination that use of benchmarks is in the best interest of the Government. When such a determination is made, the solicitation and each resulting contract must include a provision specifying the benchmarks that must be achieved before progress payments are made.
(b) Benchmarks should not be used in a manner that will convert progress payments based on costs into progress payments based on a percentage or stage of completion.
532.503–6 Suspension or reduction of
payments. Action recommended by the contracting officer under FAR 32.503-6 must be approved by the HCA after coordination with the assigned legal counsel. Upon approval, the contracting officer will request the contract finance office to suspend or reduce payments.
532.503–9 Liquidation rates-alternate
Reduction of the liquidation rates specified in paragraph (b) of the clause at FAR 52.232-16, may be made only with the approval of the contracting director after coordination with the contract finance office. Upon approval, the contracting officer will request the finance office to reduce the rate.
Subpart 532.6-Contract Debts
532.705 Contract clauses.
532.601 Definitions. .
532.705–1 Clauses for contracting in
advance of funds.
The contracting officer shall insert the clause at 552.232–77, Availability of Funds, in solicitations and contracts for services which are “severable" when the contact, or a portion of the contract, will be chargeable to funds of the new fiscal
fiscal year and
year and the circumstances described in the prescriptions for the FAR clauses at 52.232–18 or 52.232–19 do not apply.
Debt means an amount of money or property which has been determined by a responsible official to be owed to the United States from any person, or entity except that the terms do not apply to amounts owed by another Federal agency.
Delinquent debt means an amount that has not been paid or otherwise collected by the date specified (usually 30 days) in the contracting officer's initial written demand for payment (i.e., final decision letter).
Responsible official as used in this subpart means the contracting officer. However, the contract finance office is responsible for the administration of debt collection under the Accounting Operations-Accounts Receivable and Credit and Finance Operations, and Related Activities Handbook (PFM P 4253.1).
[61 FR 1151, Jan. 17, 1996]
Subpart 532.8-Assignment of
(a) When the contracting officer determines that a debt in excess of $100 is delinquent, the contracting officer shall forward notification of the delinquent debt to the applicable finance office for collection in accordance with the Debt Collection Act of 1982, and possible forwarding to a credit reporting agency.
(b) If the contractor appeals the contracting officer's demand for payment pursuant to the Disputes clause of its contract, the contracting officer shall advise the Finance Office whether to suspend collection efforts pending resolution of the dispute.
(a) Upon receipt of a notice of assignment, the contracting officer must obtain legal counsel concurrence that both the notice and the instrument of assignment are in proper form, properly executed, and are actions that the contractor is entitled to make under the terms of the contract.
(b) When acknowledging receipt of the notice of assignment, the contracting officer must notify the contractor that all future invoices or other requests for payment under the contract must specify the name and address of the assignee and include a notation that payments due thereunder have been duly assigned. A copy of the acknowledgement, evidencing legal counsel concurrence, must be sent to the contract finance office.
(c) When payments under requirements or indefinite quantity contracts that are for the sole use of GSA have been assigned, the contracting officer must provide all GSA offices that will place orders against the contract the name and address of the assignee that will receive amounts due under the contract. The notification should also state that the contractor has been requested to specify the name and address of the assignee on future invoices.
Subpart 532.7–Contract Funding
GSA fiscal regulations are contained in the Budget Administration Handbook (COM P 4251.3A), Accounting Classification Handbook (COM P 4240.1), and Accounting OperationsVoucher Examination, Payment Handbook (PFM P 4252.1).
532.806 Contract clauses.
The contracting officer shall insert the clause at 552.232–23, Assignment of
Claims, in solicitations and require- riod is justified, in writing, and apments or indefinite quantity contracts proved by an official one level above under which more than one agency the contracting officer. Under no cirmay place orders.
cumstances may more than 30 days be
specified. Subpart 532.9—Prompt Payment
(c)(1) To increase efficiency and re
duce costs to the Government, Federal 532.902 Definitions.
Supply Service contracts under the Full cycle electronic commerce means
Stock, Special Order, and Schedules
authorize the use of electronic data interchange
payment (EDI), Internet-based invoice process
within 10 days of receipt of a proper in
voice. The contract must meet the foling, and electronic funds transfer (EFT):
lowing conditions: (a) By the Government, to place pur
(i) The contractor agrees to full cycle
electronic commerce. chase or delivery orders, receive in
(ii) The contract includes FAR 52.232voices, and pay invoices.
33, Mandatory Information for Elec(b) By the Contractor, to accept and
tronic Funds Transfer Payment. fill orders, submit invoices, and receive
(2) The 10 day payment terms apply payment.
to each order that meet all the follow[63 FR 12966, Mar. 16, 1998, as amended at 63 ing conditions: FR 38330, July 16, 1998]
(i) FSS places the order using EDI in
accordance with the Trading Partner 532.905 Invoice payments.
Agreement. (a) Before exercising the authority to (ii) The contractor submit EDI inmodify the date for constructive ac- voices in accordance with the Trading ceptance in subdivision (a)(6)(i) of the Partner Agreement or invoices through clause at FAR 52.232–25, Prompt Pay- the GSA Finance Center Internet-based ment, or subdivision (a)(5)(i)(A) of the
invoice process. clause at FAR 52.232–26, Prompt Pay- (iii) A GSA Finance Center pays the ment for Fixed-Price Architect-Engi- invoices using EFT. neer Contracts, the contracting officer (3) The 10 day payment terms do not shall prepare a written justification ex- apply to any order: plaining why a longer period is nec
(i) Placed by a GSA contracting acessary. The time specified must be de- tivity other than FSS. termined on a case-by-case basis and
(ii) Placed by or paid by another the justification must be approved by agency. an official one level above the con
[54 FR 26541, June 23, 1989, as amended at 63 tracting officer. A contracting officer FR 12966, Mar. 16, 1998; 63 FR 38330, July 16, must not specify a constructive accept- 1998] ance period that exceeds 30 days. The time specified in subdivision (a)(5)(i)(B)
532.905–70 Certification of payment to of the clause at FAR 52.232-26 for con
subcontractors and suppliers. structive approval of progress pay
When a contract includes the clause ments must not exceed 7 days.
at FAR 52.232-5, Payments Under (b) The time specified for payment of Fixed-Priced Construction Contracts, progress payments in subdivision no progress payments will be processed (a)(1)(i)(A) of the clause at FAR 52.232- until the contractor submits a certifi27, Prompt Payment for Construction cation of payment to subcontractors Contracts, must be determined by the and suppliers. The GSA Form 2419, Cercontracting officer on a case-by-case tification of Progress Payments Under basis. Periods longer than 14 days must Fixed-Price Construction Contracts, be justified in writing and approved by may be used for certification. an official one level above the contracting
532.905–71 Final payment. officer. Under
circumstances may more than 30 days be (a) The final payment on construcspecified. The time specified in subdivi- tion or building service contracts must sion (a)(4)(i) of FAR clause 52.232–27, for not be processed until the contractor constructive acceptance or approval submits a properly executed GSA Form will be determined by the contracting 1142, Release of Claims. If, after reofficer on a case-by-case basis but may peated attempts, the contracting offinot exceed 7 days unless a longer pe- cer is unable to obtain a release of