FAR 13.404—Contract clause.
Plain-English Summary
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.
Key Rules
Insert the fast payment clause
The contracting officer shall include clause 52.213-1, Fast Payment Procedure, in solicitations and contracts when the rule applies. This is not optional when the conditions are met and the procedure is intended to be used.
Conditions must be satisfied
The clause is required only when the conditions in FAR 13.402 are applicable. In other words, the contracting officer must confirm that the fast payment procedure is appropriate before using the clause.
Intent to use fast payment
The clause must be included only when it is intended that the fast payment procedure will be used in the contract. If fast payment is not planned, the clause should not be inserted under this section.
BPA placement flexibility
For blanket purchase agreements, the contracting officer may place the clause either in the BPA itself or in the individual orders issued under the BPA. This gives flexibility in structuring the payment terms for recurring purchases.
Responsibilities
Contracting Officer
Determine whether the conditions in FAR 13.402 apply and whether fast payment is intended. If so, insert clause 52.213-1 in the solicitation and contract, or for BPAs decide whether to place it in the BPA or in orders under the BPA.
Agency
Ensure acquisition procedures and templates support proper use of the fast payment clause and that personnel understand when the procedure may be used.
Contractor
Review the solicitation or contract to understand whether fast payment applies and comply with the payment and performance expectations associated with the clause.
Practical Implications
This section is a drafting rule: if fast payment is intended, the clause must be included up front, not added later after award without proper basis.
A common pitfall is assuming fast payment can be used just because it is convenient; the contracting officer still has to verify that the conditions in FAR 13.402 are met.
For BPAs, the placement choice matters. Putting the clause in the BPA may simplify repeated ordering, while placing it in orders allows more order-by-order control.
Contractors should check whether the clause is actually in the governing instrument, because payment timing and documentation expectations can differ significantly when fast payment is authorized.
Contracting officers should make sure the contract file reflects the decision to use fast payment, since the clause is the formal trigger for that procedure.
Official Regulatory Text
The contracting officer shall insert the clause at 52.213-1 , Fast Payment Procedure, in solicitations and contracts when the conditions in 13.402 are applicable and it is intended that the fast payment procedure be used in the contract (in the case of BPAs, the contracting officer may elect to insert the clause either in the BPA or in orders under the BPA).