Overview
This section prescribes the specific FAR clauses and provisions that contracting officers must include in solicitations and contracts to establish the legal framework for Electronic Funds Transfer (EFT) and third-party payment methods. It ensures that the government and contractors have a mutual understanding of how payment information will be collected, maintained, and utilized for disbursements.
Key Rules
- Default EFT Clause (SAM): FAR 52.232-33 is mandatory for contracts requiring registration in the System for Award Management (SAM), unless a specific exception applies or a third-party payment arrangement is used.
- Non-SAM EFT Clause: FAR 52.232-34 is used when EFT is required but the contractor is not in SAM; it requires the contractor to provide EFT information at least 15 days before the first payment request unless otherwise specified.
- Third-Party Payments: FAR 52.232-36 must be included when payments are made via government commercial purchase cards or other third-party accounts; this clause must always be used in conjunction with a standard EFT clause (-33 or -34).
- Multiple Payment Methods: FAR 52.232-37 is required for delivery order contracts where the payment method may vary by individual order.
- Pre-Award Requirements: If EFT info is required with an offer (FAR 52.232-38), contracting officers must ensure that for sealed bids, this sensitive financial data is excluded from public openings and protected from public disclosure.
- Alternative Routing: FAR 52.232-35 is used if agency procedures require EFT information to be sent to an office other than the designated payment office.
Practical Implications
- Payment Delays: Contractors must ensure their banking information is accurately maintained in SAM or provided within the 15-day window to avoid administrative delays in receiving payment.
- Flexibility in Orders: On large IDIQ or delivery order contracts, the government maintains the right to toggle between EFT and purchase card payments, provided the correct "Multiple Payment Arrangements" clause is present.