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  • Question

    Hi, I am trying to find out the meaning of the NMCARS Part G 5232.903. does the acceptor has 7 calendar days to accept the invoice? and when does the Prompt Payment Act is applicable?


    Answer

    There are a few exceptions but generally, the Prompt Payment Act is applicable to all contracts.  Refer to FAR 32.908 for specific guidance regarding which Prompt Payment clause to put into a contract.  According to the appropriate Prompt Payment clause, “Government acceptance is deemed to occur constructively on the 7th day (unless otherwise specified in this contract) after the Contractor delivers the supplies or performs the 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 provision.”  The 7 days that you refer to applies to acceptance of the supply or service as a deliverable under the contract.  The requirement for payment is generally within 30 days after the billing office receives a proper invoice or 30 days after acceptance whichever is later.  However, refer to more specific language in the appropriate prompt payment clause in FAR 52.232.  NMCARS 5232.903 makes it a requirement to put information pertaining to the constructive acceptance period on the face of the contract so that it is easily seen and therefore people will be more aware of it.
     

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