FAR 13.4—Subpart 13.4

General.

FAR 13.401 explains the general rule for the fast payment procedure under simplified acquisition procedures. It covers when the Government may pay a contractor before it has verified receipt and acceptance of supplies, what the contractor is certifying by submitting an invoice under this method, and the contractor’s obligation to replace, repair, or correct supplies that are not received, are damaged in transit, or do not conform to the purchase agreement. It also assigns primary responsibility to the contracting officer for determining the amount of debts that arise when the contractor fails to meet those replacement, repair, or correction obligations, with cross-references to FAR 32.602 and 32.603. In practice, this section matters because it speeds payment for routine supply purchases while shifting some risk away from the Government, so both sides must understand the certification effect of the invoice and the consequences if the supplies later prove defective or missing. It is a risk-management rule: the Government gets faster payment processing, and the contractor accepts a continuing obligation to make the Government whole if the shipment problem is discovered later.

Conditions for use.

FAR 13.402 explains when the fast payment procedure may be used for small purchases and what safeguards must be in place before an agency relies on it. It covers the dollar threshold for individual purchasing instruments, the special allowance for higher limits in executive agencies on a case-by-case basis, the need for geographic separation and inadequate communications between receiving and disbursing activities, the title-passage rules for supplies, the supplier’s agreement to replace, repair, or correct nonconforming or lost/damaged supplies, the types of purchasing instruments eligible for fast payment, and the internal system required to document performance, provide timely feedback on deficiencies, and identify suppliers who abuse the procedure. In practice, this section is designed to speed payment when normal acceptance-based payment would be impractical, while still protecting the Government from paying for undelivered or defective supplies. It is a risk-based exception to standard payment processing, so agencies must confirm that all listed conditions are present and that using fast payment is consistent with the rest of the purchase. Contractors should understand that fast payment can improve cash flow, but it also shifts some risk to the supplier because payment may occur before full Government acceptance evidence is available.

Preparation and execution of orders.

FAR 13.403 addresses the required contents of orders, purchase orders, and blanket purchase agreements when the fast payment procedure is used. It covers three specific subjects: the requirement that supplies be shipped transportation or postage prepaid, the requirement for where invoices must be sent, and the required consignee notification language for nonreceipt, damage, or nonconformance. The purpose is to speed payment while still protecting the Government by ensuring the seller pays shipping costs up front, invoices go to the right office for prompt processing, and receiving activities report problems quickly. In practice, this section helps contracting personnel build orders that support fast payment without losing control over delivery, acceptance, and dispute reporting. It also creates a clear timeline for the consignee to notify the purchasing office, which is important for resolving shortages, transit damage, and quality issues before records and payments become stale.

Contract clause.

FAR 13.404 tells contracting officers when they must include the Fast Payment Procedure clause at 52.213-1 in simplified acquisition solicitations and contracts. It ties the clause requirement to the conditions in FAR 13.402, meaning the clause is only used when the fast payment procedure is actually intended to apply and the underlying conditions for using it are present. The section also addresses how the rule works for blanket purchase agreements (BPAs), giving the contracting officer flexibility to place the clause either in the BPA itself or in individual orders issued under the BPA. In practice, this section is about making sure the contract file and contract terms clearly authorize fast payment before the government starts paying quickly without the usual level of prepayment verification. Its significance is operational: it helps speed payments to contractors while preserving control over when that accelerated payment method is allowed.