FAR 18.124—Electronic funds transfer.
Plain-English Summary
FAR 18.124 addresses a narrow exception to the normal government preference for paying contractors by electronic funds transfer (EFT). It explains that EFT payment requirements may be waived when an acquisition is being made to support unusual and compelling needs or an emergency acquisition, and it points the reader to FAR 32.1103(e) for the related payment policy and procedures. In practice, this section matters because it allows the contracting activity to move quickly when mission needs are urgent and the normal EFT setup would delay award or performance. It does not create a blanket exemption from EFT for all urgent buys; instead, it ties the waiver to specific acquisition circumstances and to the payment rules in Part 32. Contractors should understand that a waiver may be available in limited cases, while contracting officers must ensure the exception is justified and handled consistently with the payment regulations.
Key Rules
EFT is the default
Electronic funds transfer is the normal payment method for federal acquisitions. This section exists only to describe a limited waiver from that default, not to replace the general EFT requirement.
Waiver for urgent acquisitions
A waiver may be granted for acquisitions supporting unusual and compelling needs or emergency acquisitions. The exception is intended for situations where the urgency of the requirement makes the normal EFT process impractical or too slow.
Follow Part 32 guidance
Any waiver must be read together with FAR 32.1103(e), which contains the related payment policy and procedural direction. The waiver authority in this section does not stand alone.
Limited, case-specific exception
The waiver is not automatic and should be applied only when the acquisition facts fit the stated urgency categories. Agencies should treat it as a narrow exception and document the basis for using it.
Responsibilities
Contracting Officer
Determine whether the acquisition qualifies as an unusual and compelling need or emergency acquisition, decide whether an EFT waiver is appropriate, and ensure the action is handled in accordance with FAR 32.1103(e). The contracting officer should document the rationale for the waiver and coordinate any needed payment arrangements.
Agency
Provide the policies, procedures, and internal controls needed to support EFT waiver decisions in urgent acquisitions. The agency must ensure its personnel understand when the exception may be used and how to process payments consistent with the FAR.
Contractor
Be prepared to accept the payment method authorized by the government for the urgent acquisition, including a non-EFT method if a waiver is granted. The contractor should also provide any information needed to facilitate payment under the method selected.
Practical Implications
This section is mainly a speed-and-continuity provision: it helps agencies award and pay for urgent requirements without being delayed by normal EFT setup issues.
Contracting officers should not assume every emergency automatically justifies a waiver; the acquisition must fit the unusual and compelling need or emergency category.
A common pitfall is failing to coordinate the waiver with the payment rules in FAR 32.1103(e), which can create processing problems later.
Contractors should not treat a waiver as permanent or broadly applicable; it is tied to the specific acquisition and payment circumstances.
Good documentation matters because these waivers are exceptions to standard payment practice and may be reviewed later for compliance.
Official Regulatory Text
Electronic funds transfer payments may be waived for acquisitions to support unusual and compelling needs or emergency acquisitions. (See 32.1103 (e).)