OVERSIGHT COMPLIANCE BRANCH OCB

1. OVERSIGHT & COMPLIANCE BRANCH (OCB) INVOICE PAYMENTS February 16, 2011 1

2. Table of Contents Overview���.������������..3 Terms����.����..������..�....4 Guidance�����...����������.5 Responsibility�������������.6-7 Determining Payment Due Date��...................8 Payment Documentation������.��.9-10 Rejection of Invoices���������.�..11 Exception to Acceptance��������.�12 Process Table������.������..�13 2

3. Overview This training was designed to supplement Acquisition Alert 11-04 Delegation of Invoice Approval Authority. This training will outline the responsibility of the Contracting Officer and the Contracting Officer Technical Representative as it pertains to payment of contractor invoices. 3

4. Terms Invoice Payment�- a Government disbursement of monies to a contractor under a contract or other authorization for supplies or services accepted by the Government. (FAR 32.001) Prompt Payment - the date on which a check for payment is dated or, for an electronic funds transfer (EFT) the settlement date. (FAR 32.902) Designated billing office - the office or person (governmental or nongovernmental) designated in the contract where the contractor first submits invoices and contract financing requests. (FAR 32.001) Designated payment office - the office designated in the contract to make invoice payments or contract financing payments. Normally, this will be the Government disbursing office. (FAR 32.001) Delegation of Authority � to appoint a person who is authorized to perform specific duties under a contract. (Oversight and Compliance) 4

5. Guidance on Invoice Payments Authority to approve or disapprove payment of invoices is the responsibility of the Contracting Officer (CO), unless the CO elects to delegate the function to a designee in accordance with FAR 42.302. Pursuant to NOAA Administrative Order (NAO) 203-31, Section 6.02, NOAA CO�s have the authority to delegate the review and approval of invoices payments to other designated officials. Acquisition Alert 11-04, has granted delegation of authority for review and approval of all invoices submitted on NOAA contracts and orders to the Contracting Officer Technical Representatives (COTR), unless this authority is expressly retained by the CO. 5

6. Contracting Officer Responsibility Officially delegate authority to approve invoices by issuance of delegation memorandum to the identified COTR. Ensure the individual delegated with approval authority has a clear understanding of the terms and conditions of the contract. Ensure the contract identifies the COTR as the designated billing office to receive invoices. Provide a copy of the delegation memorandum or copy of contract/order containing the delegation to the Finance Office. Determine when it is necessary to retain invoice approval authority. Rescind delegation of authority in any instance where the delegate fails to comply with proper invoice processing, terms and conditions of the contract or poses an unacceptable risk to NOAA. 6

7. Contracting Officer Technical Representative Responsibility Read and sign delegation memorandum and return to CO. Become familiar with the terms and conditions of the contract. Date stamp the invoice with date received and ensure all invoices are submitted per FAR 32.905 If invoices are accurate and complete, process invoice per the payment provisions in the contract or order. If the invoice is not accurate, return the invoice to the contractor with the reasons why it is not a proper invoice per FAR 32.905. Coordinate with CO to determine appropriate payment for any rejected items, materials or services. Coordinate with CO when questions arise processing payments or if disputes arise regarding payments due or made. 7

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11. Rejection of Contractor Invoices If an invoice is found to be inaccurate or does not contain sufficient payment documentation , it must be rejected within 7 days of receipt from the contractor. It is imperative inaccurate or improper invoices be rejected within 7 days for the sole purpose of computing an interest penalty that might be due the contractor. Government acceptance shall be deemed to occur constructively on the 7th day after the contractor delivers supplies or performs services in accordance with the terms and conditions of the contract, unless there is a disagreement over quantity, quality, or contractor compliance with a contract requirement (FAR 32.904). If an invoice is rejected, the COTR must contact the CO in writing, documenting the rejection. The CO will incorporate the documentation into the official contract file. 11

12. 12 Exception to Acceptance Except for a contract for the purchase of a commercial item, including a brand-name commercial item for authorized resale (e.g., commissary items), the contracting officer may specify a longer period for constructive acceptance in the solicitation and resulting contract, if required to afford the Government a reasonable opportunity to inspect and test the supplies furnished or to evaluate the services performed. The contracting officer must document in the contract file the justification for extending the constructive acceptance period beyond 7 days. Extended acceptance periods must not be a routine agency practice and must be used only when necessary to permit proper Government inspection and testing of the supplies delivered or services performed (FAR 32.904).

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14. QUESTIONS 14