52.232-33 Payment by Electronic Funds

Transfer-System for Award Management.

As prescribed in 32.1110(a)(1), insert the following clause:

Payment by Electronic Funds Transfer-System for Award Management (Oct 2018)

(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 System for Award Management (SAM). In the event that the EFT

information changes, the Contractor shall be responsible for providing the updated information to

SAM.

(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. If the Contractor’s EFT information in the SAM is incorrect, then the

Government need not make payment to the Contractor under this contract until correct EFT

information is entered into the SAM; 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 SAM 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.

(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 SAM.

(End of clause)

Parent topic: 52.232 [Reserved]