FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.11
FAR 32.1103 Applicability.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states that the Government must make all contract payments electronically, except in specific situations. For contractors, it means you will normally be paid by electronic funds transfer (EFT), but there are exceptions where payment may be made by other methods.
Applies to: Government contracts and contractors receiving payments
Key terms: EFT · contract payments · payment office · classified contract · deployed contracting officer
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The Government shall provide all contract payments through EFT except if—
(a) The office making payment under a contract that requires payment by EFT, loses the ability to release payment by EFT. To the extent authorized by 31 CFR part 208, the payment office shall make necessary payments pursuant to paragraph (a)(2) of the clause at either 52.232-33 or 52.232-34 until such time as it can make EFT payments;
(b) The payment is to be received by or on behalf of the contractor outside the United States and Puerto Rico (but see 32.1106(b));
(c) A contract is paid in other than United States currency (but see 32.1106(b));
(d) Payment by EFT under a classified contract could compromise the safeguarding of classified information or national security, or arrangements for appropriate EFT payments would be impractical due to security considerations;
(e) A contract is awarded by a deployed contracting officer in the course of military operations, including, but not limited to, contingency operations as defined in 2.101, or a contract is awarded by any contracting officer in the conduct of emergency operations, such as responses to natural disasters or national or civil emergencies, if—
(1) EFT is not known to be possible; or
(2) EFT payment would not support the objectives of the operation;
(f) The agency does not expect to make more than one payment to the same recipient within a one-year period;
(g) An agency's need for supplies and services is of such unusual and compelling urgency that the Government would be seriously injured unless payment is made by a method other than EFT;
(h) There is only one source for supplies and services and the Government would be seriously injured unless payment is made by a method other than EFT; or
(i) Otherwise authorized by Department of the Treasury Regulations at 31 CFR part 208.
Sections it refers to
← 32.1102 Definitions. · 32.1104 Protection of EFT information. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.