Winning a federal contract can be a significant opportunity, but what happens if the government doesn’t pay you on time — or at all? While the federal government is typically a reliable payer, delays or disputes can arise, especially in today’s political climate. If you’re facing non-payment under your contract, here’s what you need to do:
Review Your Contract
- Start by carefully reviewing the payment terms in your contract.
- Check deadlines, invoicing requirements, and any clauses related to payment disputes.
- Government contracts generally follow the Federal Acquisition Regulation (FAR), which provides guidelines for how and when payments must be made.
Follow Up with the Contracting Officer
- Your contracting officer is your primary point of contact.
- If a payment is late, send a formal inquiry to confirm the status of your invoice.
- Sometimes, delays result from administrative errors that can be resolved quickly.
- If a formal inquiry from the contractor doesn’t do the trick, then consider having your attorney contact agency counsel about the matter.
Submit a Proper Invoice
Ensure that your invoice meets all federal requirements, including:
- Proper formatting per FAR 32.905
- Correct payment information
- Invoice submission through the designated payment portal (such as Wide Area Workflow (WAWF) for DoD contracts)
File a Claim Under the Contract Disputes Act
- If informal efforts fail, you can file a formal claim under the Contract Disputes Act (CDA).
- For a formal claim, the contractor should prepare (usually with the assistance of legal counsel) and submit a written claim to the contracting officer, clearly stating the amount owed, the basis for payment, citing relevant law, and certifying the claim, if appropriate.
- As the U.S. Court of Appeals for the Federal Circuit has made clear, “a ‘pure breach’ [of contract] claim accrues when a [contractor] has done all [they] must do to establish [their] payment and the [government] does not pay.” Brighton Village Assoc. v. United States, 52 F.3d 1056, 1060 (Fed. Cir. 1995).
- The contracting officer has 60 days to respond to the claim.
Escalate the Issue
- If the contracting officer denies your claim or fails to respond, you have the right to appeal to:
- The Civilian Board of Contract Appeals (CBCA) for civilian contracts
- The Armed Services Board of Contract Appeals (ASBCA) for defense contracts
- The U.S. Court of Federal Claims for both civilian and defense contracts
Final Thoughts
- Unfortunately, non-payment by the government is becoming more common lately.
- However, understanding your contract, maintaining proper documentation, communicating with your contracting officer, and following dispute resolution procedures can help you recover your rightful payments.
