Fast Pay and Accelerated Pay
Prompt Payment Act Interest Rate
The Prompt Payment Act (PPA) offered by SAP includes features
to handle the Fast Pay and Accelerated Pay requirements stipulated by
Use the links below to access detailed information on these features. The
documentation includes scenarios, giving examples of how processing in Fast
Pay and Accelerated Pay takes place.
The Fast Pay function applies payment terms of net 15 days to the purchase
order items to which it is applied.
With Accelerated Pay, you can choose to pay purchase order items earlier
than their usual payment terms, in light of certain specified criteria.
The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) by revising fast
payment procedures. The revision permits, but does not require, fast
payment when invoices and / or outer shipping containers are not marked
``Fast Pay'' provided the contract includes the ``Fast Payment Procedure''
clause. As highlighted in the clause, if the clause is in the contract, the
invoices will no longer be rejected, as is the current practice. Instead,
they will be paid using either fast payment or normal payment procedures. In
addition, the revision deletes the requirement for marking invoices ``No
Receiving Report Prepared.''
DATES: Effective Date: May 19, 2006.
FOR FURTHER INFORMATION CONTACT:
For clarification of content, contact Mr. Jeremy Olson, Procurement
Analyst, at (202) 501-3221. Please cite FAC 2005-09, FAR case 2004-031. For
information pertaining to status or publication schedules, contact the FAR
Secretariat at (202) 501-4755.
GSA, and NASA published a proposed rule, FAR case 2004-031, at 70 FR
40279 on July 13, 2005, to obtain comments on a proposal to amend the
policies and contract clause regarding Fast Pay procedures. No comments
were submitted and the rule was converted to a final rule without change
from the proposed rule.
52.213-1, Fast Payment Procedure, is revised to permit
acceptance and payment under invoices that are not prominently marked
``FAST PAY.'' This change provides the payment office
flexibility to make fast payments when invoices and/or outer shipping
containers are not marked ``FAST PAY.'' The change permits, but does not
require, fast payment when invoices and/or outer shipping containers are
not marked ``FAST PAY'' provided the contract includes the ``Fast
Payment Procedure'' clause. However, if the payment office decides to
not process invoices as ``FAST PAY'' because the proper markings are not
present, the payment date will be the payment date that would have
applied had the ``Fast Payment Procedure'' clause not been in the
contract. In this manner, an unmarked invoice will not be rejected. This
change does not eliminate the requirement for the contractor to annotate
an invoice ``FAST PAY;'' the contractor remains at risk that fast
payment procedures will not be applied unless the invoice is annotated
accordingly. If a receiving report is not prepared, it
is imperative that the invoice includes sufficient information to
facilitate follow-up verification that the item was received. The FAR
revision does not eliminate that requirement for such information on the
invoice. However, the revision does not require the statement ``No
Receiving Report Prepared'' on the invoice. This is
not a significant regulatory action and, therefore, was not subject to
review under Section 6(b) of Executive Order 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because it will have a
beneficial, but small, impact. Under the prior policy and clause, small
businesses which failed to follow the fast payment clause instructions
to mark the invoice ``FAST PAY'' had their invoices rejected, which
means they would not be paid until they sent a corrected invoice. The
clause revisions mean the invoices would not have to be automatically
rejected. No comments were received from small entities or other
members of the public.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Parts 52
Dated: April 12, 2006.
Director,Contract Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth below:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1. The authority citation for 48 CFR part 52 continues to read as
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
2. Amend section 52.213-1 by revising the date of the clause and paragraphs
(c)(1)(ii), (c)(3), and (e) to read as follows:
52.213-1 Fast Payment Procedure.
FAST PAYMENT PROCEDURE (APR 2006)
(c) * * *
(1) * * *
(ii) Display prominently on the invoice ``FAST PAY.''
Invoices not prominently marked ``FAST PAY'' via manual or electronic means
may be accepted by the payment office for fast payment. If the payment
office declines to make fast payment, the Contractor shall be paid in
accordance with procedures applicable to invoices to which the Fast Payment
clause does not apply.
* * * * *
(3) If this contract, order, or blanket purchase agreement
requires the preparation of a receiving report, the Contractor shall
(i) Submit the receiving report on the prescribed form with
the invoice; or
(ii) Include the following information on the invoice:
(A) Shipment number.
(B) Mode of shipment.
(C) At line item level--
(1) National stock number and/or manufacturer's part number;
(2) Unit of measure;
(3) Ship-To Point;
(4) Mark-For Point, if in the contract; and
(5) FEDSTRIP/MILSTRIP document number, if in the contract.
* * * * *
(e) Fast pay container identification.
The Contractor shall mark all outer shipping containers
``FAST PAY.'' When outer shipping containers are not marked ``FAST
PAY,'' the payment office may make fast payment. If the payment office
declines to make fast payment, the Contractor shall be paid in
accordance with procedures applicable to invoices to which the Fast
Payment clause does not apply.
(End of clause)
[FR Doc. 06-3686 Filed 4-18-06; 8:45 am]