DoD Working to Accelerate Small Business Payments

DoD Working to Accelerate Small Business Payments

Changes to the Defense Federal Acquisition Regulation Supplement (DFARS) will help Small Businesses contracted with the Department of Defense (DoD), receive their payments sooner.

For some small businesses, receiving payment for goods or services provided through DoD contracts can be subject to a lengthy process and cash management requirements.  The new DFARS rule allows the DoD to accelerate payments to all small businesses once all required documentation is received.

To support the new DFARS rule, modifications to the DoD payment systems are required.  These modifications will allow for the proper identification of contracts with small businesses and create system logic to release payments after the required documentation is received.

Because of the requirement to modify the payment systems, accelerating Small Business payments will be implemented in a phased approach as each system becomes capable. 
The following systems have implemented the ability to accelerate Small Business Payments:

  • Mechanization of Contract Administration Services (MOCAS)
  • Defense Commissary Agency (DeCA) resale payments made from Standard Automated Voucher Examination System (SAVES)
  • Fuels Automated System (FAS) and Automated Voucher Examination and Disbursing System (AVEDS) used to support Defense Loistics Agency (DLA) fuels commodity payments.
  • Transportation Financial Management System (TFMS) used to support Surface Deployment Distribution Command (SDDC) transportation payments.
  • Corps of Engineers Financial Management Systems (CEFMS)
  • Enterprise Business System (EBS) used to support Defense Logistics Agency (DLA) payments
  • Financial Accounting and Budget System (FABS) used to support Defense Information Systems Agency (DISA) telecommunications payments
  • OnePay (OP), which supports Department of Navy payments
  • Integrated Accounts Payable Systems (IAPS), which supports Air Force payments>
  • Computerized Accounts Payable System-Windows (CAPSW), which supports U.S. Marine Corp, Army and Defense Agency payments

The remainder of the DoD payment systems are in various stages of modification.  A full systems schedule is not available, but updates will be provided as the other DoD Entitlement systems become capable.

The rule changes were published as part of interim guidance that removed the word “disadvantaged” from the language at DFARS 232.903 and DFARS 232.906 (a)(ii).

See Defense Procurement Acquisitions Policy (DPAP) USA006959-13-DPAP (PDF 297KB - February 2014)  for information on the class deviation information.

Page updated February 12, 2015