(a) FAR 13.402(a) establishes an upper limit threshold of $30,000 for the allowable use of fast payment procedures on individual purchasing instruments. Various exceptions to this threshold exist, both at the DOD and agency (DLA) level. DFARS 213.402 allows for fast payment procedures to be utilized on individual orders exceeding the simplified acquisition threshold for brand name commissary resale subsistence items and medical supplies for direct shipment overseas. DLA permits higher-dollar applications of the fast pay tool under conditions specified in Federal Acquisition Regulation deviations (FARS DEVs) 06-05 through 06-08 and 09-05. The former four are one-time deviations with applicability limited to use in certain Base Realignment and Closure (BRAC) acquisitions; FAR DEV 09-05 is a class deviation. Additionally, a July 31st, 2009 memorandum permits use of fast pay at higher dollar levels for OCONUS subsistence awards in support of contingency operations (Note: Subject authorization applies to new acquisitions awarded after July 31st, 2009. For any contract in effect prior to July 31st, 2009, the previous authorization dated August 3rd, 2006 remains in effect for the life of that contract). See these individual documents for relevant conditions and dollar ceilings.
(f)(1)(90) In order for a contracting office to use fast payment procedures, the FAR and the DOD Financial Management Regulation (FMR, DOD 7000.14R, volume 10, chapter 10, §1003) both require that a system be in place to ensure documentary evidence of contractor performance.
(91) See DLAD PGI 13.402 for mandatory procedures to ensure fulfillment of the requirement to document evidence of contractor performance under fast pay.
(90) The additional criteria set forth below shall be followed when determining the
applicability of fast payment procedures.
(1) Depot Shipments. Requirements which are shipped to a depot and marked for
stock are not authorized to use fast payment procedures, with the exception of OCONUS stock buys supporting Forward Stock Locations (FSL) initiatives that require inspection and acceptance at destination. However, the fact that requirements may be shipped to a depot for transshipment purposes under customer direct/direct vendor delivery procedures does not disqualify the acquisition from fast pay applicability (but see (2), below).
(2) Direct Vendor Deliveries (DVDs). DVDs, including shipments that go through the consolidation point are authorized to use fast payment procedures (see 25.7302-90) if the requirements for use are otherwise satisfied. However, DVDs with source inspection or DVDs with subsistence requirements shipped through a consolidation point prior to shipment overseas are not authorized to use fast payment procedures.
(3) A contracting officer’s written determination that the conditions of FAR 13.402(a) through (f) are fulfilled, or that an applicable deviation relieves compliance with one or more of those conditions, shall be included in the contract file for manual awards when fast pay is included in a contract.
(4) The contract file for every order and contract utilizing fast pay shall be maintained up to date, and shall be immediately accessible for verification and other purposes (such as Procurement Management Reviews (PMRs) or special audits), in electronic or hard-copy format. As part of the post-payment validation process described at PGI 13.402(f)(1)(91)(C)(i), the contract file should be checked (electronically for simplified acquisitions, and manually for acquisitions valued above the simplified acquisition threshold) to ensure that the underlying contract actually contains fast payment terms.
