B-223827.3, FEB 13, 1987, OFFICE OF GENERAL COUNSEL

B-223827.3: Feb 13, 1987

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THIS IS FAR CASE NO. 86 64. AN AGENCY WILL PAY A VENDOR'S INVOICE BASED ON THE VENDOR'S ASSURANCE THAT GOODS HAVE BEEN SHIPPED.

B-223827.3, FEB 13, 1987, OFFICE OF GENERAL COUNSEL

PROCUREMENT - PAYMENT/DISCHARGE - FAST PAYMENT PROCEDURES - FEDERAL PROCUREMENT REGULATIONS/LAWS - REVISION DIGEST: GENERAL ACCOUNTING OFFICE APPROVES OF CHANGES PROPOSED IN FEDERAL ACQUISITION REGULATION (FAR) CASE NO. 86-64 TO FAR SUBPART 13.3, CONCERNING THE USE OF FAST PAYMENT PROCEDURES, AND TO THE FAST PAYMENT CLAUSE AT FAR SEC. 52.213-1.

MS. MARGARET A. WILLIS:

THIS RESPONDS TO YOUR LETTER OF DECEMBER 24, 1986, REQUESTING OUR COMMENTS ON A PROPOSAL TO AMEND FEDERAL ACQUISITION REGULATION (FAR) SUBPART 13.3, WHICH CONCERNS THE USE OF FAST PAYMENT PROCEDURES, AND THE FAST PAYMENT CLAUSE AT FAR SEC. 52.213-1. THIS IS FAR CASE NO. 86 64.

UNDER FAST PAYMENT PROCEDURES, AN AGENCY WILL PAY A VENDOR'S INVOICE BASED ON THE VENDOR'S ASSURANCE THAT GOODS HAVE BEEN SHIPPED, RATHER THAN WAITING FOR THE GOODS TO BE RECEIVED AND ACCEPTED. AMONG OTHER THINGS, THE PROPOSED CHANGES TO FAR SUBPART 13.3 WOULD IMPLEMENT PORTIONS OF ATTACHMENT 2 TO OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A 125, WHICH IMPOSED ADDITIONAL LIMITATIONS ON THE USE OF FAST PAYMENT PROCEDURES. THE PROPOSED CHANGE TO THE FAST PAYMENT CLAUSE WOULD EXTEND THE PERIOD WITHIN WHICH A CONTRACTING OFFICER MAY INSTRUCT A VENDOR TO REPLACE, REPAIR, OR CORRECT LOST OR DEFECTIVE GOODS FROM 90 TO 180 DAYS AFTER TITLE TO THE GOODS VESTS IN THE GOVERNMENT.

THE PROPOSED CHANGES SHOULD IMPROVE CONTROLS OVER FAST PAYMENT PROCEDURES. WE THEREFORE APPROVE OF THEM.