Overview
This section outlines the specific mandatory administrative requirements and clauses that must be included in contracts, purchase orders, or Blanket Purchase Agreements (BPAs) when the fast payment procedure is utilized.
Key Rules
- Shipping Requirements: All supplies must be shipped with transportation or postage charges prepaid by the contractor.
- Invoicing Direction: Invoices must be submitted to the designated finance office for priced orders, or directly to the Contracting Officer for unpriced purchase orders.
- Mandatory Consignee Statement: The consignee’s copy of the order must include a specific notice requiring them to report nonreceipt, damage, or nonconformance to the purchasing activity.
- Reporting Timeline: Consignees are expected to notify the purchasing office of any issues promptly, generally no later than 60 days after the specified delivery date.
Practical Implications
- Contractors must factor all shipping costs into their initial pricing, as "collect" shipments are prohibited under fast payment terms.
- Because fast payment allows for payment prior to government verification of receipt, these rules ensure a clear administrative trail for the government to recoup funds or seek remedies if the goods are later found to be missing or damaged.