FAR 32.909—Contractor inquiries.
Plain-English Summary
FAR 32.909 explains where contractors should direct questions about payment problems and who is responsible for resolving them. It covers two different kinds of inquiries: delinquent payments, which go to the designated billing office or designated payment office, and disputes about the amount or timing of a payment, which go to the contracting officer. It also addresses the contracting officer’s duty to work through the proper contracting channels and consult other offices as needed to resolve payment disagreements. In addition, it gives small business concerns an extra support path by allowing them to contact the agency’s local small business specialist or the Office of Small and Disadvantaged Business Utilization (OSDBU) representative for help with payment issues, late payment interest penalties, and Prompt Payment Act information. Practically, this section exists to route payment questions to the right place quickly, reduce confusion, and help contractors get timely resolution without bouncing between offices.
Key Rules
Delinquent payments go to billing or payment office
If the issue is a delinquent payment, the contractor should direct the inquiry to the designated billing office or designated payment office. This keeps routine payment-status questions with the office that handles invoice processing and payment administration.
Payment disputes go to contracting officer
If the contractor disagrees with the amount paid or the timing of payment, the matter must be directed to the contracting officer for resolution. These are contract administration issues, not just accounting questions.
CO must coordinate to resolve disputes
The contracting officer must work through the appropriate contracting channels and seek advice from other offices as necessary. This means the CO cannot resolve payment disagreements in isolation when finance, legal, or payment offices need to be involved.
Small businesses have extra assistance options
Small business concerns may contact the agency’s local small business specialist or OSDBU representative for additional help. This support can be used for payment issues, late payment interest penalties, and questions about the Prompt Payment Act.
Prompt Payment Act guidance is included
The section specifically recognizes that contractors may need information about Prompt Payment Act rights and interest penalties. Agencies should be prepared to explain how prompt payment rules apply when payments are late.
Responsibilities
Contractor
Direct delinquent payment inquiries to the designated billing office or designated payment office. Direct disagreements about payment amount or timing to the contracting officer. Small business concerns may also seek help from the local small business specialist or OSDBU representative for additional assistance.
Contracting Officer
Resolve disagreements concerning payment amount or timing. Coordinate through appropriate contracting channels and consult other offices as needed to reach a resolution. Ensure the issue is handled in the proper administrative and contractual forum.
Designated Billing Office
Receive and address inquiries about delinquent payments, including payment status and billing-related issues within its responsibility.
Designated Payment Office
Receive and address inquiries about delinquent payments and support resolution of payment-processing issues.
Agency Local Small Business Specialist / OSDBU Representative
Provide additional assistance to small business concerns on payment issues, late payment interest penalties, and Prompt Payment Act information.
Practical Implications
Contractors should identify the type of payment problem before contacting the government, because the wrong point of contact can delay resolution.
A late payment and a disputed payment are not the same thing: one is a status/processing issue, the other is a contract administration dispute.
Contracting officers should expect to involve finance, payment, and possibly legal or program offices when the dispute requires more than a simple status check.
Small businesses have a built-in support channel that can help them understand interest penalties and Prompt Payment Act rights, which is especially useful when payments are overdue.
A common pitfall is sending every payment complaint to the contracting officer; routine delinquent payment questions should first go to the billing or payment office unless the issue is actually a disagreement over amount or timing.
Official Regulatory Text
(a) Direct questions involving- (1) Delinquent payments to the designated billing office or designated payment office; and (2) Disagreements in payment amount or timing to the contracting officer for resolution. The contracting officer must coordinate within appropriate contracting channels and seek the advice of other offices as necessary to resolve dis-agreements. (b) Small business concerns may contact the agency’s local small business specialist or representative from the Office of Small and Disadvantaged Business Utilization to obtain additional assistance related to payment issues, late payment interest penalties, and information on the Prompt Payment Act.