c. Title to the supplies passes to the gov- ernment upon delivery to the post of- fice, common carrier, or initial point of government receipt. d. The supplier agrees to replace, re- pair, or correct supplies not properly received. e. The purchase is made as a firm-fixed- price purchase order or contract. f. A system is in place to ensure the documentation of delivery, timely feedback to the contracting officer in case of problems, and verification that the supplier in question does not have a record of poor integrity with prior fast payment orders. Procedures Once we meet the conditions noted above, we must take a few more steps when issuing our purchase or - der or Blanket Purchase Agreement per RFO FAR 32.1203. The items must be shipped with prepaid transporta - tion included. The vendor must send invoices directly to the payment/fi - nance office clearly marked “FAST PAY” per the clause to ensure that the invoices are not held pending documented acceptance. Also, per the clause, outer shipping contain -
Conditions for Use Well, this is a good deal, right? Why don’t we use it all the time? The answer lies in our willingness to ac - cept risk, in terms of contract/project performance and dollar exposure. So RFO FAR 32.1202 establishes param - eters to balance risk equitably. The language specifies the following con - ditions when and where we may use the Fast Payment procedures: a. The transaction cannot exceed the Simplified Acquisition Threshold (currently $350,000 in normal cir- cumstances) per the FAR. However, the DoW FAR Supplement (DFARS) 232. 1202 (a) states an individual order may exceed the Simplified Acqui- sition Threshold for brand name commercial subsistence products for commissary resale and for med- ical supplies being shipped directly overseas. b. Delivery will be to a distant, remote location where communications may limit the use of normal receipt processes. (Use of these procedures enhances our ability to find sup - pliers willing to ship to overseas locations, to ships at sea, and to war zones.)
ers must be marked “FAST PAY.” (This ideally will trigger the receiver’s recall of their duties under the next bullet.) The copy of the contract sent to the receiving office (consignee) must in - clude the following statement: Consignee’s Notifcation to Purchasing Activity of Nonreceipt, Damage, or Nonconformance The consignee shall notify the pur- chasing office promptly after the specified date of delivery of sup - plies not received, damaged in transit, or not conforming to speci- fications of the purchase order. Unless extenuating circumstances exist, the notification should be made not later than 60 days after the specified date of delivery. This notification is intended to en - sure that we “close the loop” with the contracting officer in the event of any issues so that they may demand cor - rection, replacement, or repair within the 180 days allowed by the clause.
44 DEFENSE ACQUISITION MAGAZINE | JANUARY – FEBRUARY 2026
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