How (and when) the government pays you

The government is a reliable customer: it pays its invoices, and it owes interest when it pays late. But it pays after delivery, so on a supply contract you will usually buy the goods first and get paid later. Knowing the timeline is what lets you bid with confidence.

The timeline

• You deliver the goods or finish the work.
• You submit a proper invoice: correct contract number, quantities and prices, matching the award.
• Under the Prompt Payment Act, payment is generally due within 30 days of a proper invoice, and late payments earn interest.

Where you invoice

• Defense agencies, including DLA: WAWF, inside the PIEE system.
• Many civilian agencies: Treasury's Invoice Processing Platform (IPP), or as the contract directs.
• Small purchases may be paid by government purchase card, which is faster.

How much cash to plan for

Plan to front your supplier's cost, shipping and packaging for roughly 30 to 60 days: your supplier's lead time, delivery, then about 30 days for payment. A $5,000 order means about $4,000 to $4,500 tied up for one to two months. Start with orders you can comfortably carry, and grow as payments come back.

Avoid the common delays

• Invoice exactly as the contract reads: one mismatched line can send an invoice back.
• Keep your SAM.gov registration and bank details current; an expired registration can hold payments.
• Keep proof of delivery.

Sources

• Prompt Payment (5 CFR Part 1315)
• PIEE (WAWF invoicing)
• Invoice Processing Platform (IPP)

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