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Subpart 532.1-General

532.111 Contract clauses.

(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.

[54 FR 26541, June 23, 1989, as amended at 60 FR 42804, Aug. 17, 1995]

532.112 Payment of subcontractors under contracts for non-commercial items.

532.112-1 Subcontractor assertions of

nonpayment.

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.

[61 FR 1151, Jan. 17, 1996]

otherwise noted.

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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 a 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.

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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).

532.606 Debt determination and collection.

532.606-70 Referral of delinquent debts.

(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.

Subpart 532.7-Contract Funding

532.700 Scope.

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).

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(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.

532.806 Contract clauses.

The contracting officer shall insert the clause at 552.232-23, Assignment of

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532.905 Invoice payments.

(a) Before exercising the authority to modify the date for constructive acceptance in subdivision (a)(6)(i) of the clause at FAR 52.232-25, Prompt Payment, or subdivision (a)(5)(i)(A) of the clause at FAR 52.232-26, Prompt Payment for Fixed-Price Architect-Engineer Contracts, the contracting officer shall prepare a written justification explaining why a longer period is necessary. The time specified must be determined on a case-by-case basis and the justification must be approved by an official one level above the contracting officer. A contracting officer must not specify a constructive acceptance period that exceeds 30 days. The time specified in subdivision (a)(5)(i)(B) of the clause at FAR 52.232-26 for constructive approval of progress payments must not exceed 7 days.

(b) The time specified for payment of progress payments in subdivision (a)(1)(i)(A) of the clause at FAR 52.23227, Prompt Payment for Construction Contracts, must be determined by the contracting officer on a case-by-case basis. Periods longer than 14 days must be justified in writing and approved by an official one level above the contracting officer. Under no circumstances may more than 30 days be specified. The time specified in subdivision (a)(4)(i) of FAR clause 52.232-27, for constructive acceptance or approval will be determined by the contracting officer on a case-by-case basis but may not exceed 7 days unless a longer pe

riod is justified, in writing, and approved by an official one level above the contracting officer. Under no circumstances may more than 30 days be specified.

(c)(1) To increase efficiency and reduce costs to the Government, Federal Supply Service contracts under the Stock, Special Order, and Schedules Programs may authorize payment within 10 days of receipt of a proper invoice. The contract must meet the following conditions:

(i) The contractor agrees to full cycle electronic commerce.

(ii) The contract includes FAR 52.23233, Mandatory Information for Electronic Funds Transfer Payment.

(2) The 10 day payment terms apply to each order that meet all the following conditions:

(i) FSS places the order using EDI in accordance with the Trading Partner Agreement.

(ii) The contractor submit EDI invoices in accordance with the Trading Partner Agreement or invoices through the GSA Finance Center Internet-based invoice process.

(iii) A GSA Finance Center pays the invoices using EFT.

(3) The 10 day payment terms do not apply to any order:

(i) Placed by a GSA contracting activity other than FSS.

(ii) Placed by or paid by another agency.

[54 FR 26541, June 23, 1989, as amended at 63 FR 12966, Mar. 16, 1998; 63 FR 38330, July 16, 1998]

532.905-70 Certification of payment to subcontractors and suppliers.

When a contract includes the clause at FAR 52.232-5, Payments Under Fixed-Priced Construction Contracts, no progress payments will be processed until the contractor submits a certification of payment to subcontractors and suppliers. The GSA Form 2419, Certification of Progress Payments Under Fixed-Price Construction Contracts, may be used for certification.

532.905-71 Final payment.

(a) The final payment on construction or building service contracts must not be processed until the contractor submits a properly executed GSA Form 1142, Release of Claims. If, after repeated attempts, the contracting officer is unable to obtain a release of

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