+------------+---------------------------------------------------------+
| **Duty**   | Determine whether to authorize payment against an       |
|            | invoice in full, in part, or not at all.                |
+------------+---------------------------------------------------------+
| **Co       | Given a contract and an invoice for payment.            |
| nditions** |                                                         |
+------------+---------------------------------------------------------+
| *          | Authorize payment of money of the amount to which the   |
| *Overall** | contractor is entitled under the terms and conditions   |
|            | of the con­tract (not more; not less). Payment must      |
| **         | conform to agency policies and the Prompt Payment Act.  |
| Standard** |                                                         |
+------------+---------------------------------------------------------+

+----------+--------+-------------------------------------------------+
| ## **Po  |        |                                                 |
| licies** |        |                                                 |
+----------+--------+-------------------------------------------------+
| *        | ***Age | ## **Subject**                                  |
| **FAR*** | ncy*** |                                                 |
|          |        |                                                 |
|          | ***Sup |                                                 |
|          | pl.*** |                                                 |
+----------+--------+-------------------------------------------------+
| 4.9      |        | Taxpayer identification number information.     |
+----------+--------+-------------------------------------------------+
| 8.709    |        | Payments for acquisitions from nonprofit        |
|          |        | agencies employing people who are blind or      |
|          |        | severely disabled.                              |
+----------+--------+-------------------------------------------------+
| 1        |        | No tailoring of the terms and conditions of FAR |
| 2.302(b) |        | 52.212-4 with respect to assignment, payment,   |
|          |        | and invoices.                                   |
+----------+--------+-------------------------------------------------+
| 13.4     |        | Fast payment procedure.                         |
+----------+--------+-------------------------------------------------+
| 22.1022  |        | Withholding of contract payments under the      |
|          |        | Service Contract Act.                           |
+----------+--------+-------------------------------------------------+
| 23.506   |        | Suspension of payments, termination of          |
|          |        | contract, and debarment and suspension actions. |
+----------+--------+-------------------------------------------------+
| 27.205   |        | Adjustment of royalties.                        |
+----------+--------+-------------------------------------------------+
| 27.206   |        | Refund of royalties.                            |
+----------+--------+-------------------------------------------------+
| 29       |        | Taxes.                                          |
+----------+--------+-------------------------------------------------+
| 3        |        | Partial payments for accepted supplies and      |
| 2.102(d) |        | services.                                       |
+----------+--------+-------------------------------------------------+
| 32.611   |        | Routine setoff.                                 |
+----------+--------+-------------------------------------------------+
| 32.612   |        | Withholding and setoff.                         |
+----------+--------+-------------------------------------------------+
| 32.804   |        | Extent of assignee's protection.                |
+----------+--------+-------------------------------------------------+
| 32.9     |        | Prompt payment.                                 |
+----------+--------+-------------------------------------------------+
| 3        |        | Recoupment.                                     |
| 5.003(c) |        |                                                 |
+----------+--------+-------------------------------------------------+
| 42.7     |        | Indirect cost rates.                            |
+----------+--------+-------------------------------------------------+
| 42.1403  |        | Shipping documents covering f.o.b. origin       |
|          |        | shipments.                                      |
+----------+--------+-------------------------------------------------+
| 47.103   |        | Transportation Documentation and Audit          |
|          |        | Regulation.                                     |
+----------+--------+-------------------------------------------------+
| 47.104-5 |        | Citation of Government rate tenders.            |
+----------+--------+-------------------------------------------------+
| 47.4     |        | Air transportation by U.S.-flag carriers.       |
+----------+--------+-------------------------------------------------+
| 49.112   |        | Payment when terminating.                       |
+----------+--------+-------------------------------------------------+
| 52.      |        | Invoice.                                        |
| 212-4(g) |        |                                                 |
+----------+--------+-------------------------------------------------+
| 52.      |        | Payment.                                        |
| 212-4(i) |        |                                                 |
+----------+--------+-------------------------------------------------+
| 52.      |        | Taxes.                                          |
| 212-4(k) |        |                                                 |
+----------+--------+-------------------------------------------------+
| 52.213-1 |        | Fast payment procedure.                         |
+----------+--------+-------------------------------------------------+
| 52.216-7 |        | Allowable cost and payment.                     |
+----------+--------+-------------------------------------------------+
| 52.216-8 |        | Fixed fee.                                      |
+----------+--------+-------------------------------------------------+
| 5        |        | Incentive fee.                                  |
| 2.216-10 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Cost contract -- no fee.                        |
| 2.216-11 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Predetermined indirect cost rates.              |
| 2.216-15 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Incentive price revision -- firm target.        |
| 2.216-16 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Incentive price revision -- successive targets. |
| 2.216-17 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Payments of allowable costs before the          |
| 2.216-26 |        | definitization.                                 |
+----------+--------+-------------------------------------------------+
| 52.222-4 |        | Contract Work Hours and Safety Standards Act -- |
|          |        | overtime compensation.                          |
+----------+--------+-------------------------------------------------+

+----------+--------+-------------------------------------------------+
| *        | ***Age | ## **Subject**                                  |
| **FAR*** | ncy*** |                                                 |
|          |        |                                                 |
|          | ***Sup |                                                 |
|          | pl.*** |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Service Contract Act of 1965, as amended.       |
| 2.222-41 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 52.223-6 |        | Drug-free workplace.                            |
+----------+--------+-------------------------------------------------+
| 52.225-8 |        | Duty-free entry.                                |
+----------+--------+-------------------------------------------------+
| 52.227-9 |        | Refund of royalties.                            |
+----------+--------+-------------------------------------------------+
| 52.229-1 |        | State and local taxes.                          |
+----------+--------+-------------------------------------------------+
| 52.229-3 |        | Federal, state and local taxes.                 |
+----------+--------+-------------------------------------------------+
| 52.229-4 |        | Federal, state and local taxes (noncompetitive  |
|          |        | contract).                                      |
+----------+--------+-------------------------------------------------+
| 52.229-5 |        | Taxes -- contracts performed in U. S.           |
|          |        | possessions or Puerto Rico.                     |
+----------+--------+-------------------------------------------------+
| 52.229-6 |        | Taxes -- foreign fixed-price contracts.         |
+----------+--------+-------------------------------------------------+
| 52.229-7 |        | Taxes -- fixed-price contracts with foreign     |
|          |        | governments.                                    |
+----------+--------+-------------------------------------------------+
| 52.229-8 |        | Taxes -- foreign cost-reimbursement contracts.  |
+----------+--------+-------------------------------------------------+
| 52.229-9 |        | Taxes -- cost-reimbursement contracts with      |
|          |        | foreign governments.                            |
+----------+--------+-------------------------------------------------+
| 5        |        | State of New Mexico gross receipts and          |
| 2.229-10 |        | compensating tax.                               |
+----------+--------+-------------------------------------------------+
| 52.232-1 |        | Payments.                                       |
+----------+--------+-------------------------------------------------+
| 52.232-2 |        | Payments under fixed-price research and         |
|          |        | development contracts.                          |
+----------+--------+-------------------------------------------------+
| 52.232-3 |        | Payments under personal services contracts.     |
+----------+--------+-------------------------------------------------+
| 52.232-7 |        | Payments under time-and-materials and           |
|          |        | labor-hour contracts.                           |
+----------+--------+-------------------------------------------------+
| 52.232-8 |        | Discounts for prompt payment.                   |
+----------+--------+-------------------------------------------------+
| 52.232-9 |        | Limitation on withholding of payment.           |
+----------+--------+-------------------------------------------------+
| 5        |        | Extras                                          |
| 2.232-11 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Prompt payment.                                 |
| 2.232-25 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Payment by electronic funds transfer -- central |
| 2.232-33 |        | contractor registration.                        |
+----------+--------+-------------------------------------------------+
| 5        |        | Payment by electronic funds transfer -- other   |
| 2.232-34 |        | than central contractor registration.           |
+----------+--------+-------------------------------------------------+
| 5        |        | Designation of office for Government receipt of |
| 2.232-35 |        | electronic funds transfer information.          |
+----------+--------+-------------------------------------------------+
| 5        |        | Payment by third party.                         |
| 2.232-36 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Multiple payment arrangements.                  |
| 2.232-37 |        |                                                 |
+----------+--------+-------------------------------------------------+
| 5        |        | Submission of electronic funds transfer         |
| 2.232-38 |        | information with offer.                         |
+----------+--------+-------------------------------------------------+
| 5        |        | F.o.b. origin -- Government bills of lading or  |
| 2.242-10 |        | prepaid postage.                                |
+----------+--------+-------------------------------------------------+
| 5        |        | F.o.b. origin -- Government bills of lading or  |
| 2.242-11 |        | indicia mail.                                   |
+----------+--------+-------------------------------------------------+
| 52.247-1 |        | Commercial bills of lading notations.           |
+----------+--------+-------------------------------------------------+
| 5        |        | Preference for U.S.-flag air carriers.          |
| 2.247-63 |        |                                                 |
+----------+--------+-------------------------------------------------+

# Other KSA\'s

1\. Ability to thoroughly review the invoice and related information to
determine the proper payment amount.

2\. Ability to select and apply the proper mathematical techniques to
calculate the proper payment amount.

3\. Ability to show understanding, courtesy, tact, and empathy in
dealing with contractors on issues related to invoices and payment.

4\. Ability to communicate orally and in writing about the amount due
the contractor and the documentation required to assure proper payment.

5\. Ability to identify problems that will prevent proper payment, use
sound judgment to identify alternative solutions, and make appropriate
recommendations.

6\. Ability to work with customers and contractors to assure that timely
and effective contract performance is not affected by a breakdown in the
payment process.

7\. Ability to maintain the honesty and integrity of the acquisition
process.

  -----------------------------------------------------------------------
  **Other Policies and References (Annotate As Necessary):**

  -----------------------------------------------------------------------

![](media/image1.wmf){width="2.420138888888889in"
height="8.072222222222223in"}

+--------------------------------+-------------------------------------+
| **Tasks**                      | **Related Standards**               |
+--------------------------------+-------------------------------------+
| 1\. Examine the invoice for    | Check invoices to:                  |
| completeness and notify        |                                     |
| contractor of any defects.     | -   Ensure that the billing office  |
|                                |     has annotated the actual date   |
|                                |     of receipt;                     |
|                                |                                     |
|                                | -   Identify any missing elements   |
|                                |     required by FAR 32.905(e) or    |
|                                |     FAR 52.213-1(c) (as             |
|                                |     applicable); and                |
|                                |                                     |
|                                | -   Notify the contractor of any    |
|                                |     defects in the invoice within 7 |
|                                |     calendar days (3 days on        |
|                                |     contracts for meat, meat        |
|                                |     products, or fish; or 5 days on |
|                                |     contracts for perishable        |
|                                |     agricultural commodities, dairy |
|                                |     products, edible fats or oils)  |
|                                |     after receipt of the invoice at |
|                                |     the des­ignated billing office   |
|                                |     to avoid interest penalties     |
|                                |     under the Prompt Payment Act.   |
+--------------------------------+-------------------------------------+
| 2\. Identify terms and         | Correctly identify all applicable   |
| conditions of the contract     | terms and conditions (e.g., price,  |
| that bear on the amount to be  | type of con­tract, payment, period   |
| paid.                          | for constructive ac­ceptance,        |
|                                | discounts, liquidated damages,      |
|                                | labor law requirements).            |
+--------------------------------+-------------------------------------+
| 3\. Obtain documents and       | Examples include:                   |
| determinations that bear on    |                                     |
| the amount to be paid.         | -   Inspection or receiving report  |
|                                |     forms or com­mercial shipping    |
|                                |     documents and packing lists;    |
|                                |                                     |
|                                | -   Documentation on the            |
|                                |     application of remedies, such   |
|                                |     as liquidated damages or        |
|                                |     rejection of work;              |
|                                |                                     |
|                                | -   Determinations on billing       |
|                                |     rates, final indirect cost      |
|                                |     rates, and on the allowability  |
|                                |     of in­voiced costs;              |
|                                |                                     |
|                                | -   Reports on contractor           |
|                                |     indebtedness;                   |
|                                |                                     |
|                                | -   Adjustments to liquidation      |
|                                |     rates or reductions in          |
|                                |     commercial financing, advance,  |
|                                |     progress, or performance-based  |
|                                |     payments;                       |
|                                |                                     |
|                                | -   Interim or final adjustments to |
|                                |     the contract price;             |
|                                |                                     |
|                                | -   Contract modifications;         |
|                                |                                     |
|                                | -   Contracting officer's final     |
|                                |     decision on a claim; and        |
|                                |                                     |
|                                | -   Termination settlements.        |
+--------------------------------+-------------------------------------+
| 4\. Identify items and the     | Use Appendix A to identify items    |
| related amount that must be    | that must be deducted or withheld.  |
| deducted or withheld from the  | Examine related documents to        |
| invoice payment.               | determine the correct amount to     |
|                                | deduct or withhold.                 |
+--------------------------------+-------------------------------------+

+--------------------------------+-------------------------------------+
| **Tasks**                      | **Related Standards**               |
+--------------------------------+-------------------------------------+
| 5\. Determine whether an       | The determination should conform to |
| assignee is pro­tected from the | the requirements of FAR 32.804.     |
| deduction or withholding.      | Except as provided in the paragraph |
|                                | below, the inclusion of a no-setoff |
|                                | commitment in an assigned contract  |
|                                | entitles the assignee to receive    |
|                                | contract payments free of reduction |
|                                | or setoff for:                      |
|                                |                                     |
|                                | -   Any liability of the contractor |
|                                |     to the Government arising       |
|                                |     independently of the contract;  |
|                                |     and                             |
|                                |                                     |
|                                | -   Any of the following            |
|                                |     liabilities of the contractor   |
|                                |     to the Government arising from  |
|                                |     the assigned contract:          |
|                                |                                     |
|                                |     -   Renegotiation under any     |
|                                |         statute or contract clause; |
|                                |                                     |
|                                |     -   Fines;                      |
|                                |                                     |
|                                |     -   Penalties, exclusive of     |
|                                |         amounts that may be         |
|                                |         collected or withheld from  |
|                                |         the contractor under, or    |
|                                |         for failure to comply with, |
|                                |         the terms of the contract;  |
|                                |                                     |
|                                |     -   Taxes or social security    |
|                                |         contributions; or           |
|                                |                                     |
|                                |     -   Withholding or              |
|                                |         nonwithholding of taxes or  |
|                                |         social security             |
|                                |         contributions.              |
|                                |                                     |
|                                | In some circumstances, a setoff may |
|                                | be appropriate even though the      |
|                                | assigned contract includes a        |
|                                | no-setoff commitment, for example:  |
|                                |                                     |
|                                | -   When the assignee has neither   |
|                                |     made a loan under the           |
|                                |     assignment nor made a           |
|                                |     commitment to do so; or         |
|                                |                                     |
|                                | -   To the extent that the amount   |
|                                |     due on the contract exceeds the |
|                                |     amount of any loans made or     |
|                                |     expected to be made under a     |
|                                |     firm commitment for financing.  |
+--------------------------------+-------------------------------------+
| 6\. Perform or verify the      | Calculate the amount owed the       |
| mathematical computations      | contractor under the invoice.       |
| required to de­termine the      |                                     |
| total amount due the           |                                     |
| contractor.                    |                                     |
+--------------------------------+-------------------------------------+

+--------------------------------+-------------------------------------+
| **Tasks**                      | **Related Standards**               |
+--------------------------------+-------------------------------------+
| 7\. Contact the contractor to  | During the discussion:              |
| discuss any dif­ferences        |                                     |
| between the amount of the      | -   Accurately present all factual  |
| submit­ted invoice and the      |     data that justifies the         |
| amount that the Government     |     difference between the invoiced |
| proposes to pay.               |     amount and the amount that the  |
|                                |     Government proposed to pay.     |
|                                |                                     |
|                                | -   Provide contrac­tor              |
|                                |     representatives an opportunity  |
|                                |     to present their posi­tion.      |
|                                |                                     |
|                                | -   Ensure that the contractor's    |
|                                |     man­agement is aware of any      |
|                                |     continuing invoicing problems.  |
+--------------------------------+-------------------------------------+
| 8\. Reach and where necessary  | Alternatives generally include:     |
| document the decision on the   |                                     |
| amount to pay against an       | -   Pay in full;                    |
| invoice.                       |                                     |
|                                | -   Pay in part, after written      |
|                                |     notice to the contractor        |
|                                |     specifying the deductions       |
|                                |     and/or withholdings; or         |
|                                |                                     |
|                                | -   Reject the invoice and return   |
|                                |     it to the contrac­tor for        |
|                                |     correction and resubmission,    |
|                                |     specifying the reason.          |
|                                |                                     |
|                                | Notify the contractor of defects in |
|                                | the invoice (in terms of            |
|                                | disagreements with the amount       |
|                                | invoiced) within 7 calendar days (3 |
|                                | days on contracts for meat, meat    |
|                                | products, or fish; or 5 days on     |
|                                | contracts for perishable            |
|                                | agricultural commodities, dairy     |
|                                | products, edible fats or oils)      |
|                                | after receipt of the invoice at the |
|                                | designated billing office (to avoid |
|                                | interest penalties un­der the Prompt |
|                                | Payment Act).                       |
|                                |                                     |
|                                | Notify the contractor of deductions |
|                                | or withholdings from the amount     |
|                                | invoiced within 30 days after the   |
|                                | designated billing office has       |
|                                | re­ceived a proper invoice from the  |
|                                | contractor, or within 30 days after |
|                                | Government accep­tance, whichever is |
|                                | later (assuming no dis­agreement     |
|                                | over quantity, quality, or          |
|                                | con­tractor compliance with contract |
|                                | require­ments.).                     |
+--------------------------------+-------------------------------------+

+--------------------------------+-------------------------------------+
| **Tasks**                      | **Related Standards**               |
+--------------------------------+-------------------------------------+
| 9\. Monitor payments.          | Submit the correct invoice to       |
|                                | Finance Office in a timely manner   |
|                                | (within the meaning of the Prompt   |
|                                | Payment Act) and within the time    |
|                                | standards agreed upon be­tween the   |
|                                | Contracting Officer and the         |
|                                | Certifying Finance Officer.         |
|                                |                                     |
|                                | In general, payment should be made  |
|                                | within 30 days after the designated |
|                                | billing office has received a       |
|                                | proper invoice from the con­tractor, |
|                                | or within 30 days after Government  |
|                                | acceptance, whichever is later      |
|                                | (assuming no disagreement over      |
|                                | quantity, quality, or contractor    |
|                                | compliance with contract            |
|                                | re­quirements.). For contractor      |
|                                | financing payments, payment should  |
|                                | be made within 30 days after the    |
|                                | designated billing office has       |
|                                | received a proper request.[^1]      |
|                                |                                     |
|                                | However, interest penalties are not |
|                                | re­quired on payment delays due to   |
|                                | disagree­ment between the Government |
|                                | and contrac­tor over the payment     |
|                                | amount, or other is­sues involving   |
|                                | contract compliance, or on amounts  |
|                                | temporarily withheld or retained in |
|                                | accordance with the terms of the    |
|                                | con­tract. (FAR 32.907-1(f)).        |
|                                |                                     |
|                                | Make payments for supplies or       |
|                                | services on the Procurement List    |
|                                | maintained by the Committee for     |
|                                | Purchase from People Who Are Blind  |
|                                | or Severely Disabled within 30 days |
|                                | after shipment or after receipt of  |
|                                | a proper invoice or voucher.        |
|                                |                                     |
|                                | Ensure that payments are reported   |
|                                | to the IRS.                         |
+--------------------------------+-------------------------------------+

+----------------+------------------------------------------+----------+
| **[When:]      | **[Deduct:]{.smallcaps}**                | **[IAW   |
| {.smallcaps}** |                                          | Far      |
|                |                                          | :]{.smal |
|                |                                          | lcaps}** |
+----------------+------------------------------------------+----------+
| Administering  | Invoiced items that have not been        | 52.232-1 |
| fixed-price    | delivered and accepted.                  | and      |
| contracts      |                                          | 52.232-2 |
+----------------+------------------------------------------+----------+
|                | Invoiced prices that exceed the contract |          |
|                | price for the supplies or services.      |          |
+----------------+------------------------------------------+----------+
|                | Invoiced partial payments when the       |          |
|                | amount due on the deliverables is less   |          |
|                | than \$1,000 or 50% of contract price.   |          |
+----------------+------------------------------------------+----------+
|                | Invoiced amounts for "extras."           | 5        |
|                |                                          | 2.232-11 |
+----------------+------------------------------------------+----------+
|                | Discounts for early payment.             | 5        |
|                |                                          | 2.232-25 |
+----------------+------------------------------------------+----------+
|                | State and local taxes, by furnishing the | 52.229-1 |
|                | contractor with an evidence of any       |          |
|                | exemption from such taxes.               |          |
+----------------+------------------------------------------+----------+
|                | After-relieved Federal or foreign        | 52.229-3 |
|                | taxes.[^2]                               | through  |
|                |                                          |          |
|                |                                          | 52.229-7 |
+----------------+------------------------------------------+----------+
|                | The amount of any Federal excise tax or  |          |
|                | duty (except social security or other    |          |
|                | employment taxes) that the contractor is |          |
|                | required to pay or bear, or does not     |          |
|                | ob­tain a refund of, through the          |          |
|                | contractor\'s fault, negli­gence or       |          |
|                | failure to follow the Contracting        |          |
|                | Officer\'s in­structions.                 |          |
+----------------+------------------------------------------+----------+
| Billed for     | Improperly supported reimbursement for   | 52.247-1 |
| transporta­tion | transportation charges.                  |          |
| costs          |                                          |          |
+----------------+------------------------------------------+----------+
| Modifying the  | Unilateral or bilateral downward         | Part 43, |
| contract       | adjustments to the contract price        | 52.243-1 |
|                | (including adjustments that result from  | to       |
|                | the resolution of perfor­mance problems). | 5        |
|                |                                          | 2.243-7, |
|                |                                          | and      |
|                |                                          |          |
|                |                                          | 52.248-1 |
+----------------+------------------------------------------+----------+
| Implementing   | Liquidated damages, such as those under  | 52       |
| special        | the:                                     | .211-11, |
| contract       |                                          |          |
| remedies       | -   Liquidated Damages -- Supplies,      | 52       |
|                |     Services, or Research and            | .219-16, |
|                |     Development clause (FAR 52.211-11);  | and      |
|                |                                          |          |
|                | -   Liquidated Damages -- Small Business | 52.222-4 |
|                |     Subcontracting Plan clause (FAR      |          |
|                |     52.219-16); or                       |          |
|                |                                          |          |
|                | -   Contract Work Hours and Safety       |          |
|                |     Standards Act --Overtime             |          |
|                |     Compensation (FAR 52.222-4(b)).      |          |
+----------------+------------------------------------------+----------+
|                | Unpaid wages, such as those under the:   | 52.222-4 |
|                |                                          |          |
|                | -   Contract Work Hours and Safety       | and      |
|                |     Standards Act---Overtime             |          |
|                |     Compensation clause (FAR 52.222-4).  | 5        |
|                |                                          | 2.222-41 |
|                | ```{=html}                               |          |
|                | <!-- -->                                 |          |
|                | ```                                      |          |
|                | -   Service Contract of 1965, As Amended |          |
|                |     (FAR 52.222-41).                     |          |
+----------------+------------------------------------------+----------+

+----------------+------------------------------------------+----------+
| **[When:]      | **[Deduct:]{.smallcaps}**                | **[IAW   |
| {.smallcaps}** |                                          | Far      |
|                |                                          | :]{.smal |
|                |                                          | lcaps}** |
+----------------+------------------------------------------+----------+
| Collecting     | Setoffs for the collection of contractor | 32.611   |
| contractor     | debts.                                   | and      |
| debts          |                                          | 32.612   |
+----------------+------------------------------------------+----------+
| Progress       | From invoiced prices, amounts necessary  | 5        |
| payments are   | to liquidate prior progress payments (as | 2.232-16 |
| being made     | calculated under the terms of the        |          |
|                | Progress Payments clause.                |          |
+----------------+------------------------------------------+----------+
|                | Unallowable costs invoiced on the SF     |          |
|                | 1443, Contractor\'s Request for Progress |          |
|                | Payment.                                 |          |
+----------------+------------------------------------------+----------+
|                | For customary progress payments, 20% of  |          |
|                | the cumu­lative total allowable costs     |          |
|                | (15% for small businesses) reported on   |          |
|                | the SF 1443, Contractor\'s Request for   |          |
|                | Progress Payment, less the sum of all    |          |
|                | previous progress payments.              |          |
+----------------+------------------------------------------+----------+
|                | Costs invoiced on the SF 1443,           |          |
|                | Contractor\'s Request for Progress       |          |
|                | Payments, when a decision has been made  |          |
|                | to suspend or reduce progress payments.  |          |
+----------------+------------------------------------------+----------+
| Administering  | Retainages, such as:                     | 5        |
| a cost         |                                          | 2.216-7, |
| reimbursement  | -   15% of fee up to \$100,000 that may  | 52.216-8 |
| contract       |     be withheld under FAR 52.216-8 for   |          |
|                |     cost-plus-fixed-fee contracts or FAR | 52       |
|                |     52.216-10 for                        | .216-10, |
|                |     cost-plus-incentive-fee contracts.   | and      |
|                |                                          |          |
|                | -   1% of total estimated cost up to     | 5        |
|                |     \$100,000 under FAR 52.216-11 for    | 2.216-11 |
|                |     cost contracts with no fee.          |          |
+----------------+------------------------------------------+----------+
|                | Payment on the basis of a lower fee      |          |
|                | under cost-plus-in­centive-fee contracts, |          |
|                | when the contractor is not likely to     |          |
|                | achieve the target.                      |          |
+----------------+------------------------------------------+----------+
|                | Unallowable costs.                       |          |
+----------------+------------------------------------------+----------+
|                | Overbilled indirect costs, given billing |          |
|                | rates or final indirect cost rates for   |          |
|                | the period.                              |          |
+----------------+------------------------------------------+----------+
|                | Costs in excess of the limitation of     |          |
|                | costs or limitation of funds in          |          |
|                | cost-reim­bursement contracts.            |          |
+----------------+------------------------------------------+----------+
|                | Any tax or duty of a foreign Government  | 52.229-8 |
|                | from which the U.S. Government is exempt | or       |
|                | by agreement with the foreign            | 52.229-9 |
|                | government.                              |          |
+----------------+------------------------------------------+----------+
| Administering  | The amount by which invoiced prices      | 5        |
| a fixed-price  | exceed current billing prices (e.g.,     | 2.216-16 |
| incentive      | when billing prices are reduced).        | and\     |
| contract       |                                          | 5        |
|                |                                          | 2.216-17 |
+----------------+------------------------------------------+----------+
|                | The amount by which billing prices       |          |
|                | exceed the final prices for              |          |
|                | deliverables.                            |          |
+----------------+------------------------------------------+----------+

+----------------+------------------------------------------+----------+
| **[When:]      | **[Deduct:]{.smallcaps}**                | **[IAW   |
| {.smallcaps}** |                                          | Far      |
|                |                                          | :]{.smal |
|                |                                          | lcaps}** |
+----------------+------------------------------------------+----------+
| Administering  | Any amount in excess of the ceiling      | 52.232-7 |
| a              | price.                                   |          |
| time           |                                          |          |
| -and-materials |                                          |          |
| or labor-hour  |                                          |          |
| contract       |                                          |          |
+----------------+------------------------------------------+----------+
|                | A retainage of 5% of the amount due up   |          |
|                | to \$50,000 until execution and delivery |          |
|                | of the contractor\'s release.            |          |
+----------------+------------------------------------------+----------+
|                | Overpayments or improper amounts for     |          |
|                | materials or subcontracts.               |          |
+----------------+------------------------------------------+----------+
| Administering  | Invoiced amounts in excess of the        | 5        |
| a letter       | limitation of reim­bursement or           | 2.216-26 |
| contract       | reimbursement rates.                     |          |
+----------------+------------------------------------------+----------+
| Royalties are  | Royalties in excess of the amount that   | 52.227-9 |
| being paid[^3] | is owed by the Government.               |          |
+----------------+------------------------------------------+----------+
| Terminating a  | Invoiced amounts that are greater than   | 49.112,  |
| con­tract       | the amount au­thorized for partial        |          |
|                | payment or final payment of the          | 4        |
|                | termi­nation settlement.                  | 9.402-6, |
|                |                                          | and      |
|                |                                          |          |
|                |                                          | 49.4     |
|                |                                          | 02-7(b). |
+----------------+------------------------------------------+----------+
|                | Reprocurement costs and costs for any    |          |
|                | other damages suffered by the            |          |
|                | Government.                              |          |
+----------------+------------------------------------------+----------+

[^1]: Note that an agency can amend the clause at FAR 52.232-25 to
    specify a period shorter than 30 days, but not less than 7 days, for
    making contractor invoice payments (FAR 32.908(c)(2)).

[^2]: "After-relieved\" means a tax that the contractor is no longer
    required to pay or bear or for which the contractor obtains a refund
    or drawback, as the result of legislative, judicial, or
    administrative action taking effect after the contract date. Also
    note that the contract price might be adjusted upwards based on
    \"after-imposed\" taxes. Consult the agency-designated counsel to
    determine the applicability of a tax.

[^3]: Do not pay the invoiced amount for a royalty when:

    • The Government has a royalty-free license which covers that
    royalty.

    • Billed at a rate in excess of the rate for which the Government is
    licensed.

    • The royalties in whole or in part otherwise constitute an improper
    charge.