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GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)
Subpart 532.1—Non-Commercial Item Purchase Financing532.111 Contract clauses for non-commercial purchases.(a) Invoice requirements. Insert 552.232-70, Invoice Requirements, or something substantially the same, in all solicitations and contracts for supplies, services, construction, architect-engineer services, or the acquisition of leasehold interests in real property that require the submission of invoices for payment. Delete subparagraph (b) of the clause if an Accounting Control Transaction (ACT) number is not required for payment. (b) Adjusting payments. Insert 552.232-71, Adjusting Payments, in all solicitations and contracts for recurring building services expected to exceed the simplified acquisition threshold. (c) Final payment. Insert 552.232-72, Final Payment, in all solicitations and contracts for recurring building services expected to exceed the simplified acquisition threshold. |
If you determine under FAR 32.112-1 that a contractor’s certification of payment is inaccurate in any material respect, report the matter to the Office of Inspector General. If appropriate, the Office of Inspector General will forward a report and recommendation to the Department of Justice.
Subpart 532.2—Commercial Item Purchase Financing532.206 Solicitation provisions and contract clauses.(a) Discounts for prompt payment. Include 552.232-8, Discounts for Prompt Payments, in multiple award schedule solicitations and contracts instead of the clause at Federal Acquisition Regulation 52.232-8. Use Alternate I in solicitations and contracts for— (1) FSS Schedule 70 and the Consolidated Products and Services Schedule containing information technology Special Item Numbers (SINs); or (2) Federal Supply Schedules for recovery purchasing (see 538.7102). (b) The contracting officer shall insert the clause at 552.232-81, Payments by Non-Federal Ordering Activities, in solicitations and schedule contracts for— (1) FSS Schedule 70 and Consolidated Products and Services Schedule contracts containing information technology SINs; or (2) Federal Supply Schedules for recovery purchasing (see 538.7102). |
| (c) The contracting officer shall insert the provision at 552.232-82, Contractor’s Remittance (Payment) Address, in all Federal Supply Schedule solicitations and contracts. (d) The contracting officer shall insert the clause at 552.232-83, Contractor’s Billing Responsibilities, in all Multiple Award Schedule solicitations and contracts. |
Prepare the findings and determinations required by FAR 32.402(e) in coordination with the contract finance office. The HCA approves the findings, determinations and authorization for advance payments.
The contract finance office will give you the interest rate to be charged on the unliquidated balance of advance payments.
The HCA must approve or disapprove requests for “unusual” progress payments.
(a) In unusual circumstances, you may request that specified benchmarks, such as submission and acceptance of a preproduction or pilot model, be achieved before making progress payments based on costs. If you do this, the HCA must make a written determination that use of benchmarks is in the best interest of the Government. The solicitation and each resulting contract must then include a provision specifying which benchmarks must be achieved before progress payments are made.
(b) Do not use benchmarks in a manner that will convert progress payments based on costs into progress payments based on a percentage or stage of completion.
(a) The contract finance office director provides the approval required by FAR 32.502-2.
(b) Before providing for progress payments based on costs, request the Credit and Finance Section, the Heartland Region, to provide advice and assistance about a contractor’s financial condition and the adequacy of his accounting system and controls.
Ensure that the contract finance office:
(a) Has adequate administrative and fiscal procedures to accomplish the fiscal aspects of FAR 32.503-5.
(b) Gives you the date and amount of each progress payment to a contractor.
(c) Provides you written recommendations if findings warrant action by the Government.
The HCA must approve any action recommended under FAR 32.503-6. Upon approval, request the contract finance office to suspend or reduce payments.
Reduction of the liquidation rates specified in paragraph (b) of FAR 52.232-16 may be made only with your approval after coordination with the contract finance office. Upon approval, request the finance office to reduce the rate.
“Debt” means an amount of money or property that a responsible official has determined is owed to the United States by any person or entity except that the term does not apply to amounts owed by another Federal agency.
“Delinquent debt” means an amount that has not been paid or otherwise collected by the date specified (usually 30 days) in your initial written demand for payment (i.e., contracting officer’s final decision letter).
“Responsible official” means you, the contracting officer. However, the contract finance office is responsible for the administration of debt collection under the Accounting Operations—Accounts Receivable and Credit and Finance Operations, and Related Activities Handbook (PFM P 4253.1).
(a) If you determine that a debt in excess of $100 is delinquent, notify the applicable finance office for collection in accordance with the Debt Collection Act of 1982, and possible forwarding to a credit reporting agency.
(b) If the contractor appeals your demand for payment pursuant to the Disputes clause of its contract, advise the Finance Office whether to suspend collection efforts pending resolution of the dispute.
GSA fiscal regulations are in the Budget Administration Handbook (CFO 4251.4), Accounting Classification Handbook (CFO P 4240.1), and Accounting Operations—Voucher Examination Payment Handbook (CFO P 4252.1).
532.705 Contract clauses.532.705-1 Clauses for contracting in advance of funds.Insert 552.232-73, Availability of Funds, in solicitations and contracts for services which are “severable” when both of the following conditions apply: (a) The contract, or a portion of the contract, will be chargeable to funds of the new fiscal year. (b) The circumstances described in the prescriptions for FAR 52.232-18 or 52.232-19 do not apply.
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(a) When acknowledging receipt of the notice of assignment, notify the contractor that all future invoices or other requests for payment under the contract must specify the name and address of the assignee and include a notation that payments due thereunder have been duly assigned. You must send a copy of the acknowledgment to the contract finance office.
(b) When payments under requirements or indefinite quantity contracts that are for the sole use of GSA have been assigned, provide all GSA offices that will place orders against the contract the name and address of the assignee that will receive amounts due under the contract. The notification should also state that you requested the contractor to specify the name and address of the assignee on future invoices.
532.806 Contract clauses.Insert the clause at 552.232-23, Assignment of Claims, in solicitations and requirements or indefinite quantity contracts under which more than one agency may place orders. |
You can access the interest rate applicable to late payments under the Prompt Payment Act at http://www.fms.treas.gov/prompt/formulas.html. This link provides the current interest rate and a list of past rates also.
532.908 Contract clauses.(a) Federal Supply Service. For FSS Stock, Special Order, and Schedules solicitations and contracts that provide payment in 10 days under 532.905(c): (1) If the contract will include FAR 52.212-4, insert the clause at 552.232-74, Invoice Payments. GSA received a class deviation to allow use of 552.232-74 for commercial items. (2) If the contract will not include FAR 52.212-4, insert 552.232-25, Prompt Payment, instead of FAR 52.232-25. |
| (b) Leasehold Interests in Real Property. (1) Insert 552.232-75, Prompt Payment, in solicitations and contracts for acquiring leasehold interests in real property. (2) Insert 552.232-76, Electronic Funds Transfer Payment, in solicitations and contracts for acquisition of leasehold interests in real property. (i) You may modify the date for constructive acceptance in subparagraph (b)(2) of the clause to specify a period longer than 7 calendar days (but not to exceed 30 days) if necessary because of the nature of the services to be received, inspected or accepted by the Government. Prepare a written justification for specifying the longer period and obtain your contracting director’s approval. (ii) Use Alternate I if the lease contract does not contain provisions for ordering alterations or overtime utility services. |
| (c) Solicitations, purchase orders, contracts, and leases. Insert 552.232-78, Payment Information: (1) In all solicitations, purchase orders, and contracts, including acquisitions of leasehold interests in real property. (2) In task and delivery orders if the contract that the order is placed against does not include the clause. |
Subpart 532.70—Authorizing Payment by Governmentwide Commercial Purchase Card532.7001 Definition.“Governmentwide commercial purchase card” has the same meaning as in FAR 13.101. |
532.7003 Contract clause.(a) Indefinite-delivery, indefinite-quantity (IDIQ) contracts other than Federal Supply Service. Insert the clause at 552.232-77, Payment By Governmentwide Commercial Purchase Card, in IDIQ solicitations and contracts for supplies and services if the contract will provide for payment by Governmentwide commercial purchase card as an alternative method of payment for orders. |
| (b) Federal Supply Service contracts. Use Alternate I of the clause at 552.232-77 for all FSS schedule solicitations and contracts, except for— (1) Federal Supply Schedule 70, Information Technology, and the Consolidated Products and Services Schedule contracts containing information technology Special Item Numbers; or (2) Federal Supply Schedule contracts for recovery purchasing (see 538.7102). (c) Federal Supply Service schedule contracts for information technology Special Item Numbers or Federal Supply Schedules for recovery purchasing (see 538.7102). In solicitations and contracts for (1) FSS Schedule 70 and the Consolidated Products and Services Schedule containing information technology Special Item Numbers; or (2) Federal Supply Schedule contracts for recovery purchasing (see 538.7102), use 552.232-79 instead of 552.232-77. |
(a) Payment.
(1) Process. Finance processes payment automatically, without submission of an invoice or receiving report, 30 days from the last day of service. Finance pays the monthly amount authorized in the original contract provided to Finance with the ACT label, or contract modification, less any deductions (see 532.7102(d)).
(2) Vendor payment identification. Finance generates the 12 digit invoice number using the ACT number followed by an abbreviated month and year of service (e.g., 84261554JUN7, for June 1997). Ensure that the ACT number appears on the contract award document so that the contractor can identify payments.
(b) Contract deductions. Any contract that provides for fixed roll payment requires effective monitoring to ensure satisfactory performance and identify any deductions to which the Government is entitled. If the Government is entitled to a deduction (e.g., as consideration for nonperformance or late performance), notify the Fort Worth Finance Division promptly. Prompt notice is critical to avoiding more burdensome action later to recover an overpayment. Use the following procedures.
(1) To make a deduction from the payment due a contractor, notify the Fort Worth Finance Division. You may provide the notice by any of the following means:
(i) Mail, addressed to:
Chief, Accounts Payable Branch
GSA Finance Division (7BCP)
PO Box 17181
Fort Worth, TX 76102
(ii) Facsimile (receiving report or letter format) to:
Chief, Accounts Payable Branch
(817) 978–7413
(iii) cc:Mail to:
#R7 FINANCE VCPC VENDORS A-I
#R7 FINANCE VCPC VENDORS J-Z
(2) Provide all the following information in the notice:
(i) ACT number.
(ii) Specific multiple distribution line (MDL) coding affected by the deduction, unless the deduction is prorated among all accounting coding according to the existing distribution.
(iii) Contract number.
(iv) Vendor name.
(v) Month of service.
(vi) Original monthly amount.
(vii) Amount of deduction.
(viii) Amount authorized for payment.
(ix) Your phone number.
(3) Provide deduction notices no later than the 20th day of the month following service. For notices received after the 20th, Finance will subtract the deduction from the next month’s payment.
(c) Final Payment. Based on the contract expiration date, Finance will automatically remove contracts from the fixed roll system in the month prior to expiration. Finance will request a final receiving report in the usual manner to ensure all requirements for contract close-out have been met. Finance will not make final payment until it receives the final receiving report or like authorization from you.
532.7104 Contract clauses.(a) Noncommercial item acquisitions. For solicitations and contracts to be paid by fixed roll payment, include the clause at 552.232-1, Payments. Do not include the clauses at FAR 52.232-1, Payments, or 552.232-70, Invoice Requirements. |
| (b) Commercial item acquisitions. For solicitations and contracts to be paid by fixed roll payment, tailor the clause at FAR 52.212-4 by an addendum as noted in (1) and (2) below. This tailoring is authorized by a deviation approved on January 5, 1999. (1) Delete paragraph FAR 52.212-4(g), Invoice. (2) Add the following to paragraph FAR 52.212-4(i), Payment:
The Government shall pay the Contractor, without submission of invoices or vouchers, 30 days after the service period, the prices stipulated in this contract for services rendered and accepted, less any deductions provided in this contract.
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(a) Do not approve an initial invoice or voucher before consulting with the Assistant Inspector General—Auditing or the Field Audit Office regarding cost or other supporting data as required under:
(1) Cost-reimbursement type contracts.
(2) The cost-reimbursement portion of fixed-price type contracts.
(3) Time and materials or labor-hour contracts.
(4) Fixed-price contracts providing for any of the following:
(i) Progress payments based on costs.
(ii) Advance payments.
(iii) Guaranteed loans.
(iv) Incentives or redetermination.
(b) Except for fixed-price contracts with redetermination where no price revision (upward or downward) is to be made, do not approve the final payment invoice or voucher for contracts specified in 532.7201(a), nor the final payment or settlement of other contracts subject to audit prior to:
(1) Receipt and review of the contract audit report.
(2) Consultation with the Assistant Inspector General for Auditing or the Field Audit Office if no audit is to be conducted.
(a) Require contractors to submit invoices or vouchers to you. Annotate invoices with the date of receipt, as required by FAR 32.905. That date will be used to determine interest penalties for late payments. You, or your designee, must review the processing of invoices or vouchers before payment to determine if the items and amounts claimed are in consonance with the contract terms and represent prudent business transactions. You must ensure that these payments are commensurate with physical and technical progress under the contract. If the contractor has not deducted questionable amounts from the invoice or amounts required to be withheld, you must make the required deduction, except as provided in 532.7203.
(b) Subject to 532.7201, note your approval of any payment on (or attached to) the invoice or voucher submitted by the contractor. Forward the invoice or voucher to the appropriate contract finance office for retention after certification and scheduling for payment by a disbursing office.
Audit reports will be furnished to you, with a copy to the appropriate contract finance office. Upon receipt of an audit report, pursuant to contract terms, determine the allowability of all costs covered by audit. Give full consideration to the auditor’s recommendations, but make an independent business judgment before taking any action based on the audit report. If you doubt or question any of the auditor’s recommendations, you need not make deductions from invoices or vouchers for provisional payments. In these cases, confer with the auditor and other appropriate Government personnel (such as a price specialist and assigned counsel) to determine what action to take. If you disagree with the auditor’s recommendations, document the contract file and furnish the auditor with a copy of the statement.
(a) Notify the appropriate contract finance office in writing when amounts claimed for payment are either:
(1) Suspended.
(2) Disapproved as not being allowable according to contract terms.
(3) Not allocable to the contract.
(b) Your notice forms the basis for the contract finance office to issue GSA Form 533, Administrative Difference Statement. Finance will attach a copy of GSA Form 533 to each copy of the invoice or voucher from which the deduction has been made, and will include an explanation of the deduction.
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