Federal Finance and Payments Personnel... As the new accelerated payments rule takes effect, consider shifting contract payments for new* simplified acquisitions to commercially available payment solutions like the Government Purchase Card (GPC).
Considerations:
💡 Simplified acquisitions are a natural progression from micro-purchases. Since actions under the SAT are inherently set-aside for small businesses, this is a readily identifiable pool of payments to accelerate for immediate benefit.
💡 Worried about using GPCs for contract payments? GPCs --
Can be established as "payment only" accounts to streamline the act of payment after Government acceptance.
Aren't simply carded solutions. Single Use Accounts (SUAs) and Virtual Accounts are non-carded payment products that may be available which utilize one-time payments, recurring transactions with a specific vendor, or contract payments, among other benefits.
Agencies establish controls to mitigate improper risk while other controls are inherent in the payment product. Contractors cannot charge more than approved payment amounts for one-time or recurring payments.
💡 Using the GPC earns your agency refunds ("cash-back"), based on the negotiated terms with your GPC issuing bank.
💡 Streamlines processing and gets payments into the hands of small businesses quickly.
🛒 Note the emphasis on "NEW" simplified acquisitions. The use of new payment terms requires small businesses have the ability to adapt pricing, as needed, to account for processing fees they may incur when accepting cards as a method of payment. Making a switch during contract performance without adequate consideration of these costs can negatively impact small businesses at a time of high economic stress.
Comments