Attachment_D_-_NPSAS-16_Billing_Instructions.docx

ATTACHMENT D

BILLING INSTRUCTIONS

The Department wants all contractors to understand how the Department processes invoices.[footnoteRef:2] The Department pays vendors within 15 days of receipt of a proper invoice. There are two key terms that determine when the timeline begins—receipt and proper invoice. [2: ]

Receipt occurs on the latter of the following:

1) The date a readable invoice is received by the Department for invoices transmitted electronically through email (OCFOCAMInvoicing@ed.gov). If the invoice is received after normal working hours, the next business day is used.

2) The seventh day after the date on which the property is actually delivered or the performance of services is actually completed. This date may not be accurate if the contract calls for a longer acceptance period or if we actually accept goods or services before the seventh day (see 5 CFR § 1315.4)

3) On the date of delivery, if specified in the contract.

4) On the date placed on the invoice by the contractor, if the Department fails to annotate the date of receipt.

Proper invoice The following criteria are used to determine if an invoice is proper. When the Department receives a vendor's invoice, the COR, CS, and/or CO review it for the following information. When the information is complete then the Department pays the invoice:

1) Name of vendor

2) Invoice date

3) Government contract number (10 digits)

4) Vendor invoice number, account number, or other number identified in the contract

5) Description (including, for example, contract line/subline number), price, and quantity of goods or services rendered.

6) Shipping and payment terms (unless mutually agreed that this information is only required in the contract)

7) TIN (unless mutually agreed that this information is only required in the contract)

8) Banking information for payment by EFT (unless mutually agreed that this information is only required in the contract)

9) Contact name (where practicable), title and telephone number

10) Other substantiating documentation or information required by the contract. This documentation should include information regarding where the requested funds were spent. We need to see detailed labor hours per task, travel expenses (where travelers went, transportation costs, etc.), supplies purchased, etc.[footnoteRef:3] [3:

1 There is a difference between an invoice and a voucher. Since the FAR refers to “proper invoices” when applying the Prompt Payment Act, we will use the term invoice also. This does not mean that vouchers are not covered in the same manner.

Historically, this item is the most problematic for contractors. The following explanation may help contractors to think about the types of information to include in invoices/vouchers. According to the Federal Acquisition Regulations (FAR) 16.301-3, paragraph (a)(2), a cost-reimbursement contract requires, “Appropriate Government surveillance during the performance [that] will provide reasonable assurance that efficient methods and effective cost controls are used.” This “surveillance” not only comes in the form of monthly reports, but more importantly, in invoicing. Contractors have the responsibility to request reimbursement of all recorded costs; in other words, to submit an invoice on a regular basis. FAR 52.216-7, paragraph (b) defines the term costs to include the following: materials issued from the contractor's inventory and placed in the production process for use on the contract; direct labor; direct travel; other direct in-house costs; and reasonable, allocable, and allowable indirect costs (see FAR 31), as shown in the records maintained by you for purposes of obtaining reimbursement under a Government contract. The Government has the responsibility to pay the invoice, after determining which of the costs are reasonable, allocable, and allowable. To make this determination we must receive a detailed invoice with the costs broken out.]

If the Department determines that a contractor's invoice is not proper, the invoice will be returned and the contractor will be informed of all the defects that prevent payment. Contractors should correct the invoice and return it for payment (see 5 CFR § 1315.9).