GSA: Contractors May Accept Payment Via Credit Cards

Twenty years ago, getting paid on a government contract was slow and full of red tape.

First you submit a bid, then you wait to see if you are the lowest responsible bidder, then you start work, then you submit your pay request, then the agency has you submit your lien release, then if all of your paperwork is correct you receive a check for your work (now nearly a month past the time the work was initially performed).

If the paperwork was not correct, good luck getting paid anytime soon.

Governmentwide Commercial Purchase Card
But to those Contractors with GSA Schedules the payment procedures have been pushed into the fast lane.

No longer do they have to deal with their subcontractors fussing about slow payment. No longer do they have to submit and resubmit pay requests. Instead, through the use of the new Government-wide Commercial Purchase Card, payment is made almost as soon as the goods or services are delivered.

A Government-wide Commercial Purchase Card is a credit card issued to individual government employees or agencies. The credit card can be used by these individuals or agencies to make numerous official government purchases.

Credit card purchases are not limited to smaller amounts but may be used for almost any amount of purchase the agency and contractor agree to.

Goods or Services Delivered First
As with almost every government contract, the contractor must first deliver the purchased goods or services prior to processing a transaction for payment through the credit card clearinghouse.

Also, unless the cardholder requests correction or replacement of a defective or faulty item in accordance with other contract requirements, the contractor shall immediately credit a cardholder's account for items returned as defective or faulty.
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