Government Invoice and Payment Guide: Get Paid on Federal Contracts

Quick Answer: How Do I Get Paid on Government Contracts?

Submit proper invoices through the designated electronic system (usually WAWF or IPP), ensure all required information is included, and the government must pay within 30 days under the Prompt Payment Act. Interest accrues automatically on late payments.

30 Days

Standard Payment

WAWF

Primary System

Net 30

From Acceptance

Auto

Interest on Late

Government Payment Basics

Getting paid by the federal government follows specific rules and processes. Unlike commercial customers, the government has statutory requirements that protect contractors and ensure timely payment. Understanding these rules helps you optimize cash flow.

The payment process begins when you complete work and submit a proper invoice. The government then has a set period to review, accept the work, and make payment. Delays result in interest payments to you.

Payment Process Overview

Perform Work/Deliver Goods

Complete contract requirements per terms

Submit Proper Invoice

Through designated electronic system

Government Reviews/Accepts

COR or contracting officer approves

Payment Processed

Via ACH to your bank account

Invoice Requirements

A proper invoice must contain specific information. Missing information can delay payment or result in invoice rejection.

Required Invoice Elements (FAR 32.905)

✓
Contractor Name and Address
As registered in SAM.gov
✓
Invoice Date and Number
Unique invoice identifier for tracking
✓
Contract Number
Including task/delivery order number if applicable
✓
Description of Work/Supplies
Tied to contract CLINs or SLINs
✓
Quantity and Unit Price
Matching contract pricing
✓
Shipment/Delivery Information
Date and location of delivery or service
✓
Payment Terms
Including any discount offered for early payment
✓
Remittance Address
Where payment should be sent (EFT required)

EFT Requirement

All federal payments must be made via Electronic Funds Transfer (EFT). Ensure your banking information is current in SAM.gov. Update immediately if it changes—incorrect banking info is a major cause of payment delays.

Invoice Submission Systems

WAWF (Wide Area Workflow)

Primary system for DoD contracts. Allows electronic submission, tracking, and approval of invoices and receiving reports.

• Used by DoD agencies
• Integrated with DFAS payment
• Real-time status tracking
• Supports all invoice types

IPP (Invoice Processing Platform)

Treasury system for civilian agencies. Modern interface for invoice submission and payment tracking.

• Used by civilian agencies
• Treasury-managed system
• ACH payment integration
• Simplified interface

Check Your Contract

Your contract will specify which system to use and any agency-specific requirements. Look for clauses referencing DFARS 252.232-7003 (WAWF) or FAR 52.232-33 (electronic invoicing) for specific instructions.

Payment Terms and Timelines

Standard Payment Timelines

Products/SuppliesNet 30 from acceptance

ServicesNet 30 from proper invoice

Construction (Progress)14 days from approval

Meat/Perishables7 days

Fast Pay (under $35K)15 days

Payment Start Date

The payment clock starts on the later of:

•Receipt of a proper invoice
•Government acceptance of work/goods

Prompt Payment Act

The Prompt Payment Act (31 U.S.C. 3901-3907) requires federal agencies to pay invoices on time and pay interest when they fail to do so. This law protects contractor cash flow.

Key Provisions

✓
Automatic Interest
Interest accrues automatically on late payments—no request required
✓
Treasury Rate
Interest calculated at Treasury short-term rate (published semi-annually)
✓
Acceptance Deadline
Government must accept or reject within 7 days (goods) or per contract (services)
✓
Invoice Rejection Notice
If rejecting invoice, government must notify within 7 days with reasons

Interest Calculation

Interest begins the day after payment is due and ends on the payment date. While individual amounts may be small, they add up over time. The government must pay interest automatically—you should not have to request it.

Common Payment Issues

✗
Improper Invoice
Missing required elements causes rejection—verify all info before submitting
✗
Wrong CLIN/Pricing
Invoice amounts must match contract pricing exactly
✗
Missing Receiving Report
For products, government must complete receiving report before payment
✗
COR Approval Delay
COR must approve before payment office can process—follow up if delayed
✗
Incorrect Banking Info
Outdated EFT information in SAM.gov delays or misdirects payment
✗
Funding Issues
Contract may need modification to add funds before payment can process

Best Practices

Invoice Submission

• Submit immediately upon completing work
• Double-check all required elements
• Match CLINs and pricing exactly
• Include supporting documentation
• Save confirmation of submission

Tracking and Follow-Up

• Monitor invoice status regularly
• Follow up with COR on approvals
• Track payment due dates
• Document all communications
• Escalate persistent delays

Administrative

• Keep SAM.gov registration current
• Verify EFT info quarterly
• Maintain invoice records
• Reconcile payments to invoices
• Request interest if not paid

Relationships

• Build rapport with COR
• Know your payment office contact
• Be professional about issues
• Provide prompt clarifications
• Maintain open communication

Frequently Asked Questions

What if my invoice is rejected?

The government must notify you within 7 days with specific reasons for rejection. Correct the issues and resubmit promptly. The payment clock restarts when you submit a corrected proper invoice.

Can I invoice before work is complete?

Only if your contract allows progress payments or has specific billing milestones. Most fixed-price contracts require delivery/acceptance before invoicing. Cost- reimbursement contracts typically allow monthly billing for incurred costs.

How do I check payment status?

Use the same system you submitted through (WAWF or IPP). You can also contact your COR or the contract payment office. Keep your invoice number handy for tracking purposes.

What if payment is significantly late?

Escalate to the contracting officer. Document the delay and interest owed. Consider whether the contract allows work stoppage for non-payment (most do after a certain period). Consult legal counsel for significant delays.

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