DFAS Commercial Pay Overview Getting Paid by DFAS

Transcription

1 DFAS Commercial Pay Overview Getting Paid by DFAS Defense Finance and Accounting Service Jeff Tremayne Director, Accounts Payable DA Small Business Symposium May 22,

2 DFAS COMMERCIAL PAY VENDOR PAY Pays contracts that are locally administered Typically does not pay contracts with financing Pays both contract and non-contract payments Less complex contracts Vendor Pay Locations / Customers Supported DFAS Columbus: Air Force, Army, USMC, DLA, and Defense Agencies DFAS Indianapolis: Army and Defense Agencies CONTRACT PAY Pays contracts administered by DCMA Financing payments (progress, performance based, commercial item financing, Interim Cost) Complex, multi-year, high dollar contracts Contract Pay Locations / Customers Supported DFAS Columbus (Primary): All DoD Customers DFAS Limestone: All DoD Customers DFAS Rome: Army (Operational Commands) DFAS Limestone: Air Force (Operational Commands) DFAS Cleveland: Navy

3 Requirements Needed to Make Payment Contract Valid Invoice Receipt & Acceptance Funds Validation (Prevalidation) Active SAM Registration 5/21/2018 Integrity - Service - Innovation 3

4 Commercial Payment Process 1 2 Contract is awarded and Issued Customers Contract Writing System The physical contract document is sent to irapt/eda Contract data is sent to the applicable pay system Electronically received by the pay system, or DFAS manually inputs Pay System and irapt/eda FPDS Contractor Performance Federal Procurement Data System Contract information / Demographics 3 Contractor Submits Invoice & Receiving Report 4 Acceptance / Approval DCMA or COR irapt/wawf IRAPT/WAWF DCAA Cost Approval If applicable irapt/wawf DFAS Receives Performs 3-way match Contract Accepted Invoice Receiving report 5 Pay System DFAS entitles invoice for payment Pay System 6 7 DFAS and DoD customers perform funds prevalidation Systemic/manual Certification, Improper Pay Review, Balancing, File transfer/upload, etc. DFAS Disburses Disbursing system or Treasury Direct

5 Common Reasons for Payment Delays Your invoice has not been accepted Understand your contracts acceptance terms Be mindful of overseas acceptance terms Your invoice does not have an associated receiving report Your SAM registration is expired Updating registration is an annual requirement The pay systems link with SAM and will prevent payment if the account is expired Improper billing submission Know contractual billing requirements Use proper CLIN/SLIN structure and correct QTY/Unit Price/Unit of Measure Your invoice is waiting on prevalidation approval Funding cannot be verified for one or more of the line items you billed Integrity - Service - Innovation 5/21/2018 5

6 Accelerating Small Business Payments WHAT? In April 2011 the Department of Defense began the practice of accelerating payments to small business prime contractors In July 2012 the Department of Defense began the practice of accelerating payments to all prime contractors WHY? To further support small businesses and the U.S. economy Provide accelerated payment to small business prime contractors Provide accelerated payments to large prime contractors with the expectation that they will pay their small business sub-contractors quicker HOW? By waiving the requirement to cash manage payments to contract net terms All other requirements still apply (3-way match = contract, invoice, receipt) Integrity - Service - Innovation 5/21/2018 6

7 Background and Driving Policy Defense Federal Acquisition Regulation Supplement (DFARS) In April, 2011 a ruling was published in the Federal Register at 76 CFR authorizing the acceleration of payments to all small businesses Defense Procurement and Acquisition Policy (DPAP) Class Deviation 2011-O0007 At the same time in April 2017, DoD was temporarily waived from the requirement Advised that the implementation would be a phased, system-by-system approach Why a phased approach? Because modifications to DoD payment systems were required to accommodate the policy change Office of Management and Budget (OMB) Policy Memo, September 14th 2011 Directed all Federal Agencies to take steps in order to accelerate Small Business Payments Office of Management and Budget (OMB) Policy Memo, July 11, 2012 Directed Federal Agencies to begin accelerating payments to ALL prime contractors The intent was to improve cash flow in order for prime contractors to pay small business subcontractors quicker Integrity - Service - Innovation 5/21/2018 7

8 Key Take Aways and Things You Should Know Know your contracting officer Understand the terms of your contract Invoice in accordance with those terms Does the contracting officer have you designated as a small business? Does the applicable DFAS system have you designated as a small business? Know who your DFAS payment office is Simplify: The more complex your contract, the more risk of delays Integrity - Service - Innovation 5/21/2018 8