Monday, March 7, 2011

Interior Department Will Soon Require Contractors to Bill On-line

Interior Department contractors must begin submitting payment requests through the Treasury Department's IPP System (Internet Payment Platform) beginning May 1, 2011. Interior joins a growing list of Federal agencies using the IPP system. Based on our limited exposure to the system, it is much "friendlier" and intuitive than DoD's WAWF (Wide Area Workflow) or DOE's VIPERS (Vendor Inquiry Payment Electronic Reporting System) for submitting payment requests (any request for contract financing payment or invoice payment).

The IPP system should reduce the instances of inadequate or incomplete payment requests because it will not allow users to hit the submit button without entering all information required by FAR 32.905(b) which requires that a "proper" invoice must include the following:

  1. Name and address of the contractor.
  2. Invoice date and invoice number. (Contractors should date invoices as close as possible to the date of mailing or transmission.)
  3. Contract number or other authorization for supplies delivered or services performed (including order number and contract line item number).
  4. Description, quantity, unit of measure, unit price, and extended price of supplies delivered or services performed.
  5. Shipping and payment terms (e.g., shipment number and date of shipment, discount for prompt payment terms). Bill of lading number and weight of shipment will be shown for shipments on Government bills of lading.
  6. Name and address of contractor official to whom payment is to be sent (must be the same as that in the contract or in a proper notice of assignment).
  7. Name (where practicable), title, phone number, and mailing address of person to notify in the event of a defective invoice.
  8. Taxpayer Identification Number (TIN). The contractor must include its TIN on the invoice only if required by agency procedures. (See 4.9 TIN requirements.)
  9. Electronic funds transfer (EFT) banking information.

Under a manual billing system, if the invoice does not comply with these requirements, the designated billing office must return it within 7 days after receipt with the reasons why it is not a proper invoice. Under the IPP system, the invoice cannot be submitted without the information. Of course, if the information entered is incorrect, the invoice can still be returned to the contractor for correction.


No comments:

Post a Comment