Federal Agencies Ask Contractors to Support Digital Payments

Three federal agencies are working together to facilitate digital payments and automation with contractors and have filed a joint request for information, the Business of Federal Technology (FCW) reported on Tuesday (March 22).

The General Services Administration (GSA), Department of Defense (DOD) and NASA are striving to optimize how contractor payment data is collected, processed and used, according to a request for information (RFI) filed this week.

Feedback from stakeholders is being requested under the Federal Acquisition Regulation no later than May 20. The acquisition regulation sets procedures for contract financing and some payments, according to the report.

Related: Fed’s Plan to Expand Access to Payments System Raises Questions

Under the proposal, contractors would have to move toward the acceptance of electronic payments and follow procedures for submitting an invoice that would include services performed or supplies delivered.

The move is being done in accordance with the Paperwork Reduction Act of 1995 and regulations under the Office of Management and Budget (OMB). Comments are requested concerning whether the proposed collection of information is necessary for the proper performance of the functions of Federal Government acquisitions, according to the regulation.

The move is also part of a drive by the federal government to make data collection more efficient and also provide justification for its procedures and specifications for contract payments, according to Ross Nodurft, executive director of the Alliance for Digital Innovation.

Read more: Data, New Solutions Ease Switch From Paper Checks to Digital Payments

“Anytime you can reduce duplicative data, that’s always for the better,” Nodurft told FCW. “This may make it easier to do contracting and business with the federal government in the long run, and I’m glad they’re looking into this sort of thing.”

The GSA, DOD and NASA are also weighing automated payment collection and exploring avenues to lower the burden of the proposed collection of information while also boosting the usefulness of the data.