Getting paid on a federal contract
The government is a reliable payer and a slow one, and most payment delays come from the invoice rather than the agency. Here is how the process works, and where it usually goes wrong for a first-time contractor.
Your contract tells you where to invoice
Federal invoices go through an electronic system named in the contract, not by email or post. The two you are most likely to meet:
- WAWF (Wide Area WorkFlow), inside the PIEE portal, used by the Department of Defense. A DoD contract includes a clause with WAWF payment instructions, including which document type to submit and which office codes to route it to.
- IPP (the Invoice Processing Platform), run by the Treasury’s Bureau of the Fiscal Service and used by many civilian agencies.
Some agencies use systems of their own. Whichever it is, you need an account set up before the first invoice is due, and the contract’s own instructions override anything general, including this page.
What makes an invoice “proper”
The payment clock only starts on a proper invoice, and the Federal Acquisition Regulation lists what one must contain. Among other things: your name and address, an invoice number and date, the contract number and line item, a description of the services with quantity and price, your taxpayer identification number, and the name and address of the person to notify if something is wrong.
If something is missing, the agency is supposed to return the invoice within seven days saying why — and the clock starts again when you resubmit.
The 30-day clock
Under the Prompt Payment Act, payment is generally due 30 days after the later of two dates: the day the designated office receives a proper invoice, or the day the government accepts the work. If the agency pays late, it owes interest automatically, at a rate the Treasury sets every six months. You do not have to ask for it.
On a service contract invoiced monthly in arrears, that means the first payment arrives roughly two months after the work starts. That gap is predictable, and it is the reason cash to start matters as much as the bid price.
Why first payments stall
- SAM.gov banking details are wrong or out of date. Payment goes by electronic funds transfer to the account on your SAM.gov registration, and nowhere else.
- The wrong document type in WAWF. The contract usually specifies it, and an invoice filed as the wrong type can be rejected rather than corrected.
- No acceptance yet. If the contract requires the government to accept the work first, the clock does not start until someone does.
- Line items that do not match the contract. Bill against the contract line items as written, in the units they are priced in.
- An expired SAM.gov registration. It is renewed yearly, and a lapse can hold payment on a contract already underway.
Where to get help
The contracting officer and the payment office named in the contract are the authority for your contract. Both WAWF and IPP publish free training and run help desks for vendors, and APEX Accelerators offer free one-to-one help setting up invoicing before your first submission.
Informational only, and not legal advice. The wage determination incorporated into your solicitation governs, and coverage turns on the facts of your particular contract. When real money rides on the answer, confirm it with the contracting officer or counsel.