Overview
This section establishes the scope of FAR Subpart 32.11, outlining the regulatory policies and procedures governing payments made to contractors via Electronic Funds Transfer (EFT).
Key Rules
- Coverage: Applies to both contract financing payments (e.g., progress payments, performance-based payments) and delivery payments (payments for accepted supplies or services).
- Methodology: Sets the framework for utilizing EFT as the primary vehicle for government disbursements to contractors.
- Policy Guidance: Dictates that the procedures within this subpart must be followed to ensure the electronic transfer of funds is handled according to federal standards.
Practical Implications
- Contractors are generally required to accept payment via EFT, necessitating the maintenance of accurate financial and banking information in the System for Award Management (SAM).
- Compliance ensures that the payment process is streamlined, reducing the administrative burden and delays associated with physical checks.