52.232-34 Payment by Electronic Funds

Transfer-Other than System for Award

Management.

As prescribed in 32.1110(a)(2), insert the following clause:

Payment by Electronic Funds Transfer-Other than System for Award Management (Jul 2013)

(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"]. 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-

(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 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)

Parent topic: 52.232 [Reserved]