Electronic Funds Transfer

April 13, 2006

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It is now government policy to pay all contractors by EFT, electronic funds transfer, whenever feasible. In making EFT payments, the government uses the information contained in the Central Contractor Registration (CCR) database.

This policy underscores the need to get your company registered in the CCR database, and to make sure that the information that you have entered is correct and current (for details, see Get Registered). If the EFT information in the CCR database is incorrect, then the government may suspend payment until correct information is entered. Remember that if your EFT information changes, you are responsible for seeing that the information in the CCR database is updated.

If you have more than one remittance address and/or EFT information set in the CCR database, you must remember to notify the government of the payment receiving point applicable to the contract you are working on. Otherwise, the government will automatically make payment to the first address.

If an incomplete or erroneous transfer occurs because the government used a contractor's EFT information incorrectly, the government is responsible for making a correct payment, paying any prompt payment penalty and recovering any erroneously directed funds.

The government has two mechanisms for making EFT payment: the Automated Clearing House (ACH) network or the Fedwire Transfer System. If the government is unable to release one or more payments by EFT, you will be paid by check or some other mutually agreeable method of payment, or you may request the government to extend the payment due date until such time as the government can make payment by EFT.

Under certain specific circumstances, payment by electronic funds transfer may be made through other than the CCR database. In this case, the contractor will be required to provide the EFT information directly to the office(s) and by the date designated in the contract. And, again, if the EFT information changes, the contractor is responsible for providing the updated information to the designated office(s).

The EFT information that the contractor must provide to the designated office(s) includes:

The contract number (or other procurement identification number).
The contractor's name and remittance address, as stated in the contract(s).
The signature (manual or electronic, as appropriate), title, and telephone number of the contractor official authorized to provide this information.
The name, address, and 9-digit Routing Transit Number of the contractor's financial agent.
The contractor's account number and the type of account (checking, saving or lockbox).
If applicable, the Fedwire Transfer System telegraphic abbreviation of the contractor's financial agent.

Warning

Caution

All government requirements pertaining to electronic funds transfer are spelled out in the Federal Acquisition Regulation (FAR 32.1110 and FAR 52.232-33 and -34). Any language that you will see in a bid or contract related to EFT consists of clauses extracted from these sections.

Note that the government is required to protect against improper disclosure of all contractors' EFT information.