DoDFMR Vol 10: Contract Payment Policy

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Questions and Answers

What must contracts include as part of the payment documentation?

A summary of anticipated costs

Just the vendor's contact information

An informal agreement between parties

The data elements required under 5 CFR 1315.9(a) (correct)

What action should the entitlement office take if there are errors affecting payment processing?

Notify the contracting office for corrective action (correct)

Request an immediate payment regardless of errors

Ignore the errors and proceed with payment

Change the contract terms unilaterally

How must contract terms be changed if necessary?

By mutual agreement without documentation

Using an email notification only

Via a formal modification to the contract (correct)

Through an informal discussion

What constitutes a proper invoice under a cost-reimbursement contract?

An invoice that meets the contract requirements Signup and view all the answers

What is the time frame for the designated activity to review an invoice after receipt?

7 days Signup and view all the answers

What must be included when returning an improper invoice to the vendor?

Details regarding the reasons for the return Signup and view all the answers

What is the maximum time frame for notification about an improper invoice for meat products?

3 days Signup and view all the answers

What information is usually not needed in an invoice for monthly rental payments?

A detailed breakdown of services rendered Signup and view all the answers

What is a contractor not allowed to request regarding interest?

A blanket waiver for a group of contracts Signup and view all the answers

Where must documentation for interest waiver requests be retained?

With payment supporting documentation Signup and view all the answers

How are refunds of interest or penalties from contractors credited?

To the same line of accounting that was originally charged Signup and view all the answers

What happens to refunds if the original appropriation is canceled or closed?

Refunds are applied to Miscellaneous Receipts of the U.S. Department of the Treasury Signup and view all the answers

Which fund will cover late payment interest penalties for procurements financed by a specific contract?

The Foreign Military Sales (FMS) Trust Fund Signup and view all the answers

What document details have changed significantly since the previous version dated March 2020?

Procedures for interest waivers and refunds Signup and view all the answers

What is the correct method of documenting interest waiver requests?

Retaining comprehensive documentation with payment records Signup and view all the answers

Which option best describes the purpose of the summary of major changes found in the document?

To identify substantive revisions and hyperlink updates Signup and view all the answers

What is the primary regulation used by all Federal executive agencies for the acquisition of supplies and services with appropriated funds?

Federal Acquisition Regulation (FAR) Signup and view all the answers

Which FAR part addresses policies for the establishment and use of electronic commerce in federal acquisition?

FAR 4.5 Signup and view all the answers

What is required for contract financing and delivery payments to contractors, as stated in FAR 32.11?

Electronic Funds Transfer (EFT) Signup and view all the answers

DFARS subpart 232.70 prescribes policies regarding the submission and processing of contractor payment requests and receiving reports. What format must these be submitted in?

Electronic format Signup and view all the answers

Under which title of the United States Code does the Federal Acquisition Regulatory Council operate?

Title 41 Signup and view all the answers

Which of the following is NOT a part of the FAR referenced in the content?

FAR Part 12 Signup and view all the answers

What does FAR 32.1103 and 31 CFR 208.4 prescribe?

Limited exceptions to the EFT requirement Signup and view all the answers

What is the purpose of the Federal Acquisition Regulatory Council as outlined in Title 41, U.S.C.?

To issue and maintain procurement regulations Signup and view all the answers

What is the primary legal obligation of the seller in a contract?

To furnish the supplies or services required. Signup and view all the answers

What action must the entitlement office take if an error is found in a contractual document?

Notify the contracting office for corrective action. Signup and view all the answers

Which section of the FAR describes the types of contracts used in acquisitions?

FAR 16 Signup and view all the answers

Which form is specifically used for contract modifications?

SF 30 Signup and view all the answers

What is required for a change to be made to contract terms?

Formal modification to the contract. Signup and view all the answers

Which of the following forms is NOT commonly used for contract awards?

SF 30 Signup and view all the answers

Which regulation requires the use of electronic commerce in Federal acquisition when practicable?

FAR 4.5 Signup and view all the answers

Where can instructions for using provisions and clauses in contracts be found?

FAR 52 and DFARS 252 Signup and view all the answers

What must be established to ensure the reliability of electronic data received via system interfaces?

Processes, controls, and routine testing Signup and view all the answers

What type of invoices can contractors/vendors submit if their contract does not specify a format?

Any type of form as long as required items are included Signup and view all the answers

What are the requirements for a payment to be processed by DoD?

A proper invoice based on satisfactory contract performance Signup and view all the answers

What must happen if an invoice does not comply with contract requirements?

The invoice must be returned to the contractor/vendor with details regarding deficiencies Signup and view all the answers

Under what condition is an invoice returned as improper?

If the TIN for any designated payee is not provided Signup and view all the answers

How should electronically transmitted payment requests be handled?

They must include identical data elements as paper requests Signup and view all the answers

What is a necessary component for a proper invoice according to regulations?

The designated payee's TIN Signup and view all the answers

How should returned electronically transmitted payment requests be handled?

They must be returned the same way they were received or practically Signup and view all the answers

Study Notes

Contractual Requirements for Payments

Contracts must include required data elements under 5 CFR 1315.9(a) for payment documentation.
If errors in contracts affect payment, the entitlement office must inform the contracting office to initiate corrections.
Alterations to contract terms require formal modifications; payment offices cannot change terms independently.

Proper Invoicing Guidelines

DoD payments rely on proper invoices and satisfactory contract performance, although some contracts (e.g., monthly rentals) may not require them.
FAR 32.905(b) specifies the necessary information for proper invoices, particularly for cost-reimbursement contracts which must conform to contract details.
Designated activity must verify receipt of invoices and annotate the date, reviewing them within 7 days.
An improper invoice must be returned to the contractor/vendor with detailed reasons for disapproval.

Notifications for Improper Invoices

When returning an improper invoice, the designated activity must include reasons for its failure.
Notifications requesting corrected invoices must occur within 7 days from receipt; shorter timelines apply for perishable goods.
Contractors cannot request interest waivers for unaccrued interest or blanket waivers for multiple contracts or invoices.

Interest and Refunds Management

Interest retained or waived is considered a refund to the original appropriation used for the payment.
Refunds will follow the same accounting classification applied during the interest payment process, with cancellations being directed to Miscellaneous Receipts of the U.S. Treasury.
Foreign Military Sales (FMS) Trust Fund addresses late payment interest penalties for procurements financed by FMS contracts.

Authoritative Guidance and Policies

Policies for payment vouchers are primarily based on FAR Parts 13, 16, 32, 43, and 52, as well as related statutes and regulations.
Federal Acquisition Regulatory Council creates and maintains the FAR, governing procurement across federal agencies.
Electronic commerce is mandated in federal acquisitions as per FAR 4.5, promoting efficient transactions.

Electronic Funds Transfer Requirements

FAR 32.11 enforces that contract financing payments must occur through Electronic Funds Transfer (EFT), with specific exceptions indicated in FAR 32.1103.
Submission and processing of contractor payment requests must be electronic, in accordance with DFARS subpart 232.70.

Contract Modifications and Invoicing Processes

FAR 43 and DFARS 243.2 detail policies for contract modifications, with SF 30 being the form used for amendments and modifications.
Contractors can submit invoices in non-electronic formats if all proper invoice details are present unless dictated otherwise by their contracts.
Proper invoices must meet criteria specified in both FAR and regulatory standards to ensure timely payment processing.

Handling Electronic and Paper Requests

Electronically transmitted payment requests carry the same requirements and data elements as traditional paper invoices.
Any returned payment requests must follow the same mode of communication as they were submitted.

Conclusion

Adherence to these guidelines and regulations is crucial for smooth payment processing and contract compliance within the Department of Defense and federal agencies.

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Description

Test your knowledge on the essential elements required in contracts under 5 CFR 1315.9(a) and the proper handling of invoices for DoD payments. This quiz covers contract modification procedures and the responsibilities of different offices in the payment processing workflow. Ensure you understand the critical aspects of payment documentation and compliance.