Summary of Attachment A-G7: Direct Procurement Method (DPM) Third Party Payment System (TPPS)

This attachment describes the Defense Transportation Regulation guidelines and procedures for the DPM Electronic Bill Payment (EBP) process using the Third Party Payment System (TPPS) for Defense Personal Property shipments. The document applies to all Services and Coast Guard Personal Property Shipping Offices (PPSOs) and participating commercial contractors with active DPM contracts that designate TPPS as the authorized payer. The TPPS serves as the payment tool to reimburse DPM contractors for transportation services rendered, improving payment visibility, streamlining the Defense Finance and Accounting Service (DFAS) and Finance Center (FINCEN) payment and collection processes, and reducing invoice documentation delays. The payment process requires contractors to enter invoicing data through the TPPS user interface, with corresponding government orders automatically created upon invoice submission. All items enter an approval-required status pending Notice of Completion (NOC) and PPSO approval before payment processing occurs within 72 hours.

The DPM electronic payment process consists of ten sequential procedural steps: establishing accounting data with Line of Account (LOA) requirements, initial cost estimates, Global Exchange (GEX) EDI 858 validation, contractor invoice creation through EDI 859 or TPPS user interface, PPSO approval with a maximum price threshold of $0 triggering manual approval for all invoices, monthly summary invoice generation and PPSO certification, DFAS pre-validation and payment processing via Electronic Funds Transfer, and EDI 810 invoice transmission to DFAS. The PPSO must approve, dispute, or deny invoices within three Government Business Days (GBD) of NOSC submission. Payment occurs within 24–48 hours following PPSO approval, with the monthly summary statement billing cycle on the 9th of each month or 1st business day thereafter. The attachment includes DFAS Financial Payment Centers contact information for Army, Air Force, Navy, Marine Corps, and Coast Guard, and specifies required contract inclusions: DFAR Clause 48 CFR 252.232-7003 paragraph (c)(2) and SF 1449 Block 18a payment language referencing the DTR Attachment A-G7.