Overview
This section establishes the timing and requirements for billing and payment when a contractor orders supplies from Government stock through agencies such as the GSA, DoD, or VA.
Key Rules
- Billing Timing: Government agencies will only issue bills to contractors after the ordered supplies have been shipped.
- Evidence of Liability: The receipt of a bill is considered sufficient legal evidence to establish that the contractor is liable for payment.
- Payment Basis: A received bill serves as the formal basis for payment; no further documentation is required to trigger the contractor's obligation.
- Promptness Requirement: Contracting officers are mandated to instruct contractors to settle these billings promptly upon receipt.
Practical Implications
- Contractors must ensure they have internal processes ready to remit payment immediately upon receipt of a bill, as the bill itself—rather than confirmation of delivery—validates the debt.
- Government agencies avoid administrative delays by linking billing directly to the shipment milestone rather than the order date.