Overview
This section establishes the legal foundation for federal payment methods, citing the statutory mandate that all government contract payments must be made via Electronic Funds Transfer (EFT).
Key Rules
- Legal Mandate: Under 31 U.S.C. 3332, EFT is the mandatory method for all federal contract disbursements.
- Regulatory Oversight: The implementation of this requirement is governed by the Secretary of the Treasury through regulations found at 31 CFR Part 208.
- Scope: The requirement applies universally to all contract payments, subject to the specific implementing Treasury regulations.
Practical Implications
- Contractors must provide accurate banking information and maintain an active registration in the System for Award Management (SAM) to ensure timely payment.
- The government is generally prohibited from issuing paper checks, making EFT compliance a prerequisite for doing business with the federal government.