FAR 52.232-6—Payment under Communication Service Contracts with Common Carriers.
Plain-English Summary
FAR 52.232-6 is a payment clause used in solicitations and contracts for regulated communication services provided by common carriers. It tells the parties how the Government will pay for services and facilities furnished under Communications Service Authorizations (CSAs), and it ties payment directly to the rates and charges established elsewhere in the contract, specifically the clause titled “Rates, Charges and Services.” The clause also establishes that payment is made in arrears, meaning after the services or facilities have been furnished, and only after the contractor submits invoices. In practice, this clause is important because it creates a clear billing and payment framework for telecommunications-type services where usage, service authorizations, and tariff-like pricing structures may govern performance. It also notes that payment due dates may be modified by agency regulations, so agencies may adjust timing details while still using the basic structure of the clause. Overall, the clause is meant to reduce disputes over when payment is due, what can be billed, and what pricing controls apply.
Key Rules
Applies to regulated communications
This clause is prescribed for solicitations and contracts covering regulated communication services by common carriers. It is not a general-purpose payment clause; it is intended for a specialized communications contracting environment.
Payment is in arrears
The Government pays after the contractor has furnished the services and facilities. The clause does not authorize advance payment for these services under its terms.
Invoice submission required
Payment is triggered by the contractor’s submission of invoices. The contractor must bill in the manner required by the contract and applicable agency procedures before payment can be made.
CSA-based performance
The services and facilities being paid for must be furnished in accordance with the terms of CSAs issued under the contract. The CSA is the operative authorization for the specific services to be delivered and billed.
Rates control payment amount
The Government pays the rates and charges set forth in the clause entitled “Rates, Charges and Services.” This means the payment amount is governed by the contract’s pricing terms, not by informal understandings or unilateral billing practices.
Agency may adjust due dates
The clause is to be appropriately modified with respect to payment due dates in accordance with agency regulations. Agencies may therefore tailor timing provisions, but only within the framework allowed by those regulations.
Responsibilities
Contracting Officer
Include this clause in the appropriate communications contracts, ensure it is modified for payment due dates if agency regulations require it, and make sure the contract clearly identifies the applicable rates, charges, and CSA process.
Contractor
Provide the contracted communication services and facilities under the terms of the CSAs, submit proper invoices, and bill only the rates and charges established in the contract.
Agency
Apply any agency-specific regulations affecting payment due dates and ensure internal payment procedures align with the clause and the contract’s communications-service structure.
Government Paying Office
Process invoices in arrears based on services and facilities actually furnished under CSAs and pay only the contractually established rates and charges.
Practical Implications
This clause makes the CSA the key document for what gets billed, so contractors should verify that every invoice matches an issued CSA and the contract’s pricing terms.
A common pitfall is billing for services not clearly authorized or not yet furnished; under this clause, payment is tied to actual furnished services and facilities.
Because payment is in arrears, contractors should plan cash flow accordingly and not assume any upfront payment unless another contract provision authorizes it.
Contracting officers should ensure the “Rates, Charges and Services” clause is consistent with the payment clause so there is no mismatch between authorized service levels and billable amounts.
Agency-specific payment due date modifications can affect invoice timing and cash management, so both sides should confirm any local regulatory changes before performance begins.
Official Regulatory Text
As prescribed in 32.111 (a)(6) , insert the following clause, appropriately modified with respect to payment due dates in accordance with agency regulations, in solicitations and contracts for regulated communication services by common carriers: Payment under Communication Service Contracts with Common Carriers (Apr 1984) The Government shall pay the Contractor, in arrears, upon submission of invoices for services and facilities furnished in accordance with the terms of CSAs issued under this contract, the rates and charges for the services and facilities as set forth in the clause entitled "Rates, Charges and Services." (End of clause)