Affected FAR Pages

SUBPART 32.11—ELECTRONIC FUNDS TRANSFER

Subpart 32.11—Electronic Funds Transfer
32.1100 Scope of subpart.
This subpart provides policy and procedures for contract
financing and delivery payments to contractors by electronic
funds transfer (EFT).
32.1101 Statutory requirements.
31 U.S.C. 3332 requires, subject to implementing regulations of the Secretary of the Treasury at 31 CFR Part 208, that
EFT be used to make all contract payments.
32.1102 Definitions.
As used in this subpart—
“Electronic Funds Transfer information (EFT)” means
information necessary for making a payment by EFT through
specified EFT mechanisms.
“Governmentwide commercial purchase card” means a
card that is similar in nature to a commercial credit card that
is used to make financing and delivery payments for supplies
and services. The purchase card is an EFT method and it may
be used as a means to meet the requirement to pay by EFT, to
the extent that purchase card limits do not preclude such
payments.
“Payment information” means the payment advice provided by the Government to the contractor that identifies what
the payment is for, any computations or adjustments made by
the Government, and any information required by the Prompt
Payment Act.
32.1103 Applicability.
The Government shall provide all contract payments
through EFT except if—
(a) The office making payment under a contract that
requires payment by EFT, loses the ability to release payment
by EFT. To the extent authorized by 31 CFR Part 208, the payment office shall make necessary payments pursuant to
paragraph (a)(2) of the clause at either 52.232-33 or
52.232-34 until such time as it can make EFT payments;
(b) The payment is to be received by or on behalf of the
contractor outside the United States and Puerto Rico (but see
32.1106(b));
(c) A contract is paid in other than United States currency
(but see 32.1106(b));
(d) Payment by EFT under a classified contract could compromise the safeguarding of classified information or national
security, or arrangements for appropriate EFT payments
would be impractical due to security considerations;
(e) A contract is awarded by a deployed contracting officer
in the course of military operations, including, but not limited
to, contingency operations as defined in 2.101, or a contract
is awarded by any contracting officer in the conduct of emer-

32.1106
gency operations, such as responses to natural disasters or
national or civil emergencies, if—
(1) EFT is not known to be possible; or
(2) EFT payment would not support the objectives of
the operation;
(f) The agency does not expect to make more than one payment to the same recipient within a one-year period;
(g) An agency’s need for supplies and services is of such
unusual and compelling urgency that the Government would
be seriously injured unless payment is made by a method other
than EFT;
(h) There is only one source for supplies and services and
the Government would be seriously injured unless payment is
made by a method other than EFT; or
(i) Otherwise authorized by Department of the Treasury
Regulations at 31 CFR Part 208.
32.1104 Protection of EFT information.
The Government shall protect against improper disclosure
of contractors’ EFT information.
32.1105 Assignment of claims.
The use of EFT payment methods is not a substitute for a
properly executed assignment of claims in accordance with
Subpart 32.8. EFT information that shows the ultimate recipient of the transfer to be other than the contractor, in the
absence of a proper assignment of claims, is considered to be
incorrect EFT information within the meaning of the “Suspension of Payment” paragraphs of the EFT clauses at 52.232-33
and 52.232-34.
32.1106 EFT mechanisms.
(a) Domestic EFT mechanisms. The EFT clauses at
52.232-33 and 52.232-34 are designed for use with the domestic United States banking system, using United States currency, and only the specified mechanisms (U.S. Automated
Clearing House, and Fedwire Transfer System) of EFT. However, the head of an agency may authorize the use of any other
EFT mechanism for domestic EFT with the concurrence of the
office or agency responsible for making payments.
(b) Nondomestic EFT mechanisms and other than United
States currency. The Government shall provide payment by
other than EFT for payments received by or on behalf of the
contractor outside the United States and Puerto Rico or for
contracts paid in other than United States currency. However,
the head of an agency may authorize appropriate use of EFT
with the concurrence of the office or agency responsible for
making payments if—
(1) The political, financial, and communications infrastructure in a foreign country supports payment by EFT; or
(2) Payments of other than United States currency may
be made safely.
32.11-1

32.1107
32.1107 Payment information.
The payment or disbursing office shall forward to the contractor available payment information that is suitable for
transmission as of the date of release of the EFT instruction
to the Federal Reserve System.
32.1108 Payment by Governmentwide commercial
purchase card.
A Governmentwide commercial purchase card charge
authorizes the third party (e.g., financial institution) that
issued the purchase card to make immediate payment to the
contractor. The Government reimburses the third party at a
later date for the third party’s payment to the contractor.
(a) The clause at 52.232-36, Payment by Third Party, governs when a contractor submits a charge against the purchase
card for contract payment. The clause provides that the contractor shall make such payment requests by a charge to a
Government account with the third party at the time the payment clause(s) of the contract authorizes the contractor to submit a request for payment, and for the amount due in
accordance with the terms of the contract. To the extent that
such a payment would otherwise be approved, the charge
against the purchase card should not be disputed when the
charge is reported to the Government by the third party. To the
extent that such payment would otherwise not have been
approved, an authorized individual (see 1.603-3) shall take
action to remove the charge, such as by disputing the charge
with the third party or by requesting that the contractor credit
the charge back to the Government under the contract.
(b) Written contracts to be paid by purchase card should
include the clause at 52.232-36, Payment by Third Party, as
prescribed by 32.1110(d). However, payment by a purchase
card also may be made under a contract that does not contain
the clause to the extent the contractor agrees to accept that
method of payment.
(c) The clause at 52.232-36, Payment by Third Party,
requires that the contract—
(1) Identify the third party and the particular purchase
card to be used; and
(2) Not include the purchase card account number. The
purchase card account number should be provided separately
to the contractor.
32.1109 EFT information submitted by offerors.
If offerors are required to submit EFT information prior to
award, the successful offeror is not responsible for resubmitting this information after award of the contract except to
make changes, or to place the information on invoices if
required by agency procedures. Therefore, contracting officers shall forward EFT information provided by the successful
offeror to the appropriate office.
32.11-2

FEDERAL ACQUISITION REGULATION
32.1110 Solicitation provision and contract clauses.
(a) The contracting officer shall insert the clause at—
(1) 52.232-33, Payment by Electronic Funds Transfer—
Central Contractor Registration, in solicitations and contracts
that include the clause at 52.204-7 or an agency clause that
requires a contractor to be registered in the CCR database and
maintain registration until final payment, unless—
(i) Payment will be made through a third party
arrangement (see 13.301 and paragraph (d) of this section); or
(ii) An exception listed in 32.1103(a) through (i)
applies.
(2)(i) 52.232-34, Payment by Electronic Funds Transfer—Other than Central Contractor Registration, in solicitations and contracts that require EFT as the method for
payment but do not include the clause at 52.204-7, Central
Contractor Registration, or a similar agency clause that
requires the contractor to be registered in the CCR database.
(ii)(A) If permitted by agency procedures, the contracting officer may insert in paragraph (b)(1) of the clause, a
particular time after award, such as a fixed number of days, or
event such as the submission of the first request for payment.
(B) If no agency procedures are prescribed, the
time period inserted in paragraph (b)(1) of the clause shall be
“no later than 15 days prior to submission of the first request
for payment.”
(b) If the head of the agency has authorized, in accordance
with 32.1106, to use a nondomestic EFT mechanism, the contracting officer shall insert in solicitations and contracts a
clause substantially the same as 52.232-33 or 52.232-34 that
clearly addresses the nondomestic EFT mechanism.
(c) If EFT information is to be submitted to other than the
payment office in accordance with agency procedures, the
contracting officer shall insert in solicitations and contracts
the clause at 52.232-35, Designation of Office for Government Receipt of Electronic Funds Transfer Information, or a
clause substantially the same as 52.232-35 that clearly
informs the contractor where to send the EFT information.
(d) If payment under a written contract will be made by a
charge to a Government account with a third party such as a
Governmentwide commercial purchase card, then the contracting officer shall insert the clause at 52.232-36, Payment
by Third Party, in solicitations and contracts. Payment by a
purchase card may also be made under a contract that does not
contain the clause at 52.232-36, to the extent the contractor
agrees to accept that method of payment.
(e) If the contract or agreement provides for the use of
delivery orders, and provides that the ordering office designate the method of payment for individual orders, the contracting officer shall insert, in the solicitation and contract or
agreement, the clause at 52.232-37, Multiple Payment
Arrangements, and, to the extent they are applicable, the
clauses at—

SUBPART 32.11—ELECTRONIC FUNDS TRANSFER

32.1110

(1) 52.232-33, Payment by Electronic Funds Transfer—
Central Contractor Registration;
(2) 52.232-34, Payment by Electronic Funds Transfer—
Other than Central Contractor Registration; and
(3) 52.232-36, Payment by Third Party.
(f) If more than one disbursing office will make payment
under a contract or agreement, the contracting officer, or
ordering office (if the contract provides for choices between
EFT clauses on individual orders or classes of orders), shall
include or identify the EFT clause appropriate for each office
and shall identify the applicability by disbursing office and
contract line item.
(g) If the solicitation contains the clause at 52.232-34, Payment by Electronic Funds Transfer—Other than Central Con-

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tractor Registration, and an offeror is required to submit EFT
information prior to award—
(1) The contracting officer shall insert in the solicitation
the provision at 52.232-38, Submission of Electronic Funds
Transfer Information with Offer, or a provision substantially
the same; and
(2) For sealed bid solicitations, the contracting officer
shall amend 52.232-38 to ensure that a bidder’s EFT
information—
(i) Is not a part of the bid to be opened at the public
opening; and
(ii) May not be released to members of the general
public who request a copy of the bid.

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32.11-3

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
from the books and records of the Contractor, in accordance
with the contract and the instructions of the Contracting Officer;
(2) (Except as reported in writing on __________), all payments to subcontractors and suppliers under this contract have
been paid, or will be paid, currently, when due in the ordinary
course of business;
(3) There are no encumbrances (except as reported in writing on _________) against the property acquired or produced
for, and allocated or properly chargeable to, the contract which
would affect or impair the Government's title;
(4) There has been no materially adverse change in the
financial condition of the Contractor since the submission by
the Contractor to the Government of the most recent written
information dated _____________; and
(5) After the making of this requested performance-based
payment, the amount of all payments for each deliverable item
for which performance-based payments have been requested
will not exceed any limitation in the contract, and the amount
of all payments under the contract will not exceed any limitation
in the contract.

(End of clause)
52.232-33 Payment by Electronic Funds Transfer—
Central Contractor Registration.
As prescribed in 32.1110(a)(1), insert the following clause:
PAYMENT BY ELECTRONIC FUNDS TRANSFER—CENTRAL
CONTRACTOR REGISTRATION (OCT 2003)
(a) Method of payment. (1) All payments by the Government under this contract shall be made by electronic funds
transfer (EFT), except as provided in paragraph (a)(2) of this
clause. As used in this clause, the term “EFT” refers to the
funds transfer and may also include the payment information
transfer.
(2) In the event the Government is unable to release one
or more payments by EFT, the Contractor agrees to either—
(i) Accept payment by check or some other mutually
agreeable method of payment; or
(ii) Request the Government to extend the payment
due date until such time as the Government can make payment
by EFT (but see paragraph (d) of this clause).
(b) Contractor's EFT information. The Government shall
make payment to the Contractor using the EFT information
contained in the Central Contractor Registration (CCR) database. In the event that the EFT information changes, the Contractor shall be responsible for providing the updated
information to the CCR database.
(c) Mechanisms for EFT payment. The Government may
make payment by EFT through either the Automated Clearing
House (ACH) network, subject to the rules of the National
Automated Clearing House Association, or the Fedwire
Transfer System. The rules governing Federal payments
through the ACH are contained in 31 CFR Part 210.

52.232-33
(d) Suspension of payment. If the Contractor’s EFT information in the CCR database is incorrect, then the Government
need not make payment to the Contractor under this contract
until correct EFT information is entered into the CCR database; and any invoice or contract financing request shall be
deemed not to be a proper invoice for the purpose of prompt
payment under this contract. The prompt payment terms of the
contract regarding notice of an improper invoice and delays in
accrual of interest penalties apply.
(e) Liability for uncompleted or erroneous transfers.
(1) If an uncompleted or erroneous transfer occurs because the
Government used the Contractor’s EFT information incorrectly, the Government remains responsible for—
(i) Making a correct payment;
(ii) Paying any prompt payment penalty due; and
(iii) Recovering any erroneously directed funds.
(2) If an uncompleted or erroneous transfer occurs
because the Contractor’s EFT information was incorrect, or
was revised within 30 days of Government release of the EFT
payment transaction instruction to the Federal Reserve System, and—
(i) If the funds are no longer under the control of the
payment office, the Government is deemed to have made payment and the Contractor is responsible for recovery of any
erroneously directed funds; or
(ii) If the funds remain under the control of the payment office, the Government shall not make payment, and the
provisions of paragraph (d) of this clause shall apply.
(f) EFT and prompt payment. A payment shall be deemed
to have been made in a timely manner in accordance with the
prompt payment terms of this contract if, in the EFT payment
transaction instruction released to the Federal Reserve System, the date specified for settlement of the payment is on or
before the prompt payment due date, provided the specified
payment date is a valid date under the rules of the Federal
Reserve System.
(g) EFT and assignment of claims. If the Contractor assigns
the proceeds of this contract as provided for in the assignment
of claims terms of this contract, the Contractor shall require
as a condition of any such assignment, that the assignee shall
register separately in the CCR database and shall be paid by
EFT in accordance with the terms of this clause. Notwithstanding any other requirement of this contract, payment to an
ultimate recipient other than the Contractor, or a financial
institution properly recognized under an assignment of claims
pursuant to Subpart 32.8, is not permitted. In all respects, the
requirements of this clause shall apply to the assignee as if it
were the Contractor. EFT information that shows the ultimate
recipient of the transfer to be other than the Contractor, in the
absence of a proper assignment of claims acceptable to the
Government, is incorrect EFT information within the meaning of paragraph (d) of this clause.
52.2-231

52.232-34

FEDERAL ACQUISITION REGULATION

(h) Liability for change of EFT information by financial
agent. The Government is not liable for errors resulting from
changes to EFT information made by the Contractor’s financial agent.
(i) Payment information. The payment or disbursing office
shall forward to the Contractor available payment information
that is suitable for transmission as of the date of release of the
EFT instruction to the Federal Reserve System. The Government may request the Contractor to designate a desired format
and method(s) for delivery of payment information from a list
of formats and methods the payment office is capable of executing. However, the Government does not guarantee that any
particular format or method of delivery is available at any particular payment office and retains the latitude to use the format
and delivery method most convenient to the Government. If
the Government makes payment by check in accordance with
paragraph (a) of this clause, the Government shall mail the
payment information to the remittance address contained in
the CCR database.
(End of clause)
52.232-34 Payment by Electronic Funds Transfer—
Other than Central Contractor Registration.
As prescribed in 32.1110(a)(2), insert the following clause:
PAYMENT BY ELECTRONIC FUNDS TRANSFER—OTHER
THAN CENTRAL CONTRACTOR REGISTRATION
(MAY 1999)
(a) Method of payment. (1) All payments by the Government under this contract shall be made by electronic funds
transfer (EFT) except as provided in paragraph (a)(2) of this
clause. As used in this clause, the term “EFT” refers to the
funds transfer and may also include the payment information
transfer.
(2) In the event the Government is unable to release one
or more payments by EFT, the Contractor agrees to either—
(i) Accept payment by check or some other mutually
agreeable method of payment; or
(ii) Request the Government to extend payment due
dates until such time as the Government makes payment by
EFT (but see paragraph (d) of this clause).
(b) Mandatory submission of Contractor's EFT information. (1) The Contractor is required to provide the Government with the information required to make payment by EFT
(see paragraph (j) of this clause). The Contractor shall provide
this information directly to the office designated in this contract to receive that information (hereafter: “designated
office”) by _______________ [the Contracting Officer shall
insert date, days after award, days before first request, the
date specified for receipt of offers if the provision at 52.232-38
is utilized, or “concurrent with first request” as prescribed by
the head of the agency; if not prescribed, insert “no later than
15 days prior to submission of the first request for payment”].
52.2-232

If not otherwise specified in this contract, the payment office
is the designated office for receipt of the Contractor’s EFT
information. If more than one designated office is named for
the contract, the Contractor shall provide a separate notice to
each office. In the event that the EFT information changes, the
Contractor shall be responsible for providing the updated
information to the designated office(s).
(2) If the Contractor provides EFT information applicable to multiple contracts, the Contractor shall specifically
state the applicability of this EFT information in terms acceptable to the designated office. However, EFT information supplied to a designated office shall be applicable only to
contracts that identify that designated office as the office to
receive EFT information for that contract.
(c) Mechanisms for EFT payment. The Government may
make payment by EFT through either the Automated Clearing
House (ACH) network, subject to the rules of the National
Automated Clearing House Association, or the Fedwire
Transfer System. The rules governing Federal payments
through the ACH are contained in 31 CFR Part 210.
(d) Suspension of payment. (1) The Government is not
required to make any payment under this contract until after
receipt, by the designated office, of the correct EFT payment
information from the Contractor. Until receipt of the correct
EFT information, any invoice or contract financing request
shall be deemed not to be a proper invoice for the purpose of
prompt payment under this contract. The prompt payment
terms of the contract regarding notice of an improper invoice
and delays in accrual of interest penalties apply.
(2) If the EFT information changes after submission of
correct EFT information, the Government shall begin using
the changed EFT information no later than 30 days after its
receipt by the designated office to the extent payment is made
by EFT. However, the Contractor may request that no further
payments be made until the updated EFT information is
implemented by the payment office. If such suspension would
result in a late payment under the prompt payment terms of
this contract, the Contractor’s request for suspension shall
extend the due date for payment by the number of days of the
suspension.
(e) Liability for uncompleted or erroneous transfers.
(1) If an uncompleted or erroneous transfer occurs because the
Government used the Contractor’s EFT information incorrectly, the Government remains responsible for—
(i) Making a correct payment;
(ii) Paying any prompt payment penalty due; and
(iii) Recovering any erroneously directed funds.
(2) If an uncompleted or erroneous transfer occurs
because the Contractor’s EFT information was incorrect, or
was revised within 30 days of Government release of the EFT
payment transaction instruction to the Federal Reserve System, and—

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
(i) If the funds are no longer under the control of the
payment office, the Government is deemed to have made payment and the Contractor is responsible for recovery of any
erroneously directed funds; or
(ii) If the funds remain under the control of the payment office, the Government shall not make payment and the
provisions of paragraph (d) shall apply.
(f) EFT and prompt payment. A payment shall be deemed
to have been made in a timely manner in accordance with the
prompt payment terms of this contract if, in the EFT payment
transaction instruction released to the Federal Reserve System, the date specified for settlement of the payment is on or
before the prompt payment due date, provided the specified
payment date is a valid date under the rules of the Federal
Reserve System.
(g) EFT and assignment of claims. If the Contractor assigns
the proceeds of this contract as provided for in the assignment
of claims terms of this contract, the Contractor shall require
as a condition of any such assignment, that the assignee shall
provide the EFT information required by paragraph (j) of this
clause to the designated office, and shall be paid by EFT in
accordance with the terms of this clause. In all respects, the
requirements of this clause shall apply to the assignee as if it
were the Contractor. EFT information that shows the ultimate
recipient of the transfer to be other than the Contractor, in the
absence of a proper assignment of claims acceptable to the
Government, is incorrect EFT information within the meaning of paragraph (d) of this clause.
(h) Liability for change of EFT information by financial
agent. The Government is not liable for errors resulting from
changes to EFT information provided by the Contractor’s
financial agent.
(i) Payment information. The payment or disbursing office
shall forward to the Contractor available payment information
that is suitable for transmission as of the date of release of the
EFT instruction to the Federal Reserve System. The Government may request the Contractor to designate a desired format
and method(s) for delivery of payment information from a list
of formats and methods the payment office is capable of executing. However, the Government does not guarantee that any
particular format or method of delivery is available at any particular payment office and retains the latitude to use the format
and delivery method most convenient to the Government. If
the Government makes payment by check in accordance with
paragraph (a) of this clause, the Government shall mail the
payment information to the remittance address in the contract.
(j) EFT information. The Contractor shall provide the following information to the designated office. The Contractor

52.232-35
may supply this data for this or multiple contracts (see
paragraph (b) of this clause). The Contractor shall designate
a single financial agent per contract capable of receiving and
processing the EFT information using the EFT methods
described in paragraph (c) of this clause.
(1) The contract number (or other procurement identification number).
(2) The Contractor’s name and remittance address, as
stated in the contract(s).
(3) The signature (manual or electronic, as appropriate),
title, and telephone number of the Contractor official authorized to provide this information.
(4) The name, address, and 9-digit Routing Transit
Number of the Contractor’s financial agent.
(5) The Contractor’s account number and the type of
account (checking, saving, or lockbox).
(6) If applicable, the Fedwire Transfer System telegraphic abbreviation of the Contractor’s financial agent.
(7) If applicable, the Contractor shall also provide the
name, address, telegraphic abbreviation, and 9-digit Routing
Transit Number of the correspondent financial institution
receiving the wire transfer payment if the Contractor’s financial agent is not directly on-line to the Fedwire Transfer System; and, therefore, not the receiver of the wire transfer
payment.
(End of clause)
52.232-35 Designation of Office for Government Receipt
of Electronic Funds Transfer Information.
As prescribed in 32.1110(c), insert the following clause:
DESIGNATION OF OFFICE FOR GOVERNMENT RECEIPT OF
ELECTRONIC FUNDS TRANSFER INFORMATION
(MAY 1999)
(a) As provided in paragraph (b) of the clause at 52.232-34,
Payment by Electronic Funds Transfer—Other than Central
Contractor Registration, the Government has designated the
office cited in paragraph (c) of this clause as the office to
receive the Contractor’s electronic funds transfer (EFT) information, in lieu of the payment office of this contract.
(b) The Contractor shall send all EFT information, and any
changes to EFT information to the office designated in
paragraph (c) of this clause. The Contractor shall not send
EFT information to the payment office, or any other office
than that designated in paragraph (c). The Government need
not use any EFT information sent to any office other than that
designated in paragraph (c).

52.2-233