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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.232-36 Payment by Third Party.

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 clause allows the Government to pay the Contractor through a third party, such as a Governmentwide commercial purchase card, instead of directly. The Contractor must request payments by charging the third party's Government account, and payments made by the third party are not considered Government payments and are not subject to the Prompt Payment Act. The clause also restricts the use of the purchase card if the Contractor has delinquent debt subject to the Treasury Offset Program.

Applies to: Contractors whose contracts include this clause and that accept payment through a third party.

What it requires

  • Accept payments due under the contract through a third party in lieu of direct Government payment, as identified in the contract.
  • Make payment requests by charging the Government account with the third party, unless the purchase card is not authorized.
  • When notified that the purchase card is no longer authorized, make payment requests according to the Contracting Officer's instructions.
  • Provide documentation of each charge against the Government's account to the Contracting Officer upon request.

Key terms: third party · Governmentwide commercial purchase card · System for Award Management (SAM) · Treasury Offset Program (TOP) · Prompt Payment Act

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 32.1110(d), insert the following clause:

Payment by Third Party (MAY 2014)

(a) General. (1) Except as provided in paragraph (a)(2) of this clause, the Contractor agrees to accept payments due under this contract, through payment by a third party in lieu of payment directly from the Government, in accordance with the terms of this clause. The third party and, if applicable, the particular Governmentwide commercial purchase card to be used are identified elsewhere in this contract.

(2) The Governmentwide commercial purchase card is not authorized as a method of payment during any period the System for Award Management (SAM) indicates that the Contractor has delinquent debt that is subject to collection under the Treasury Offset Program (TOP). Information on TOP is available at http://fms.treas.gov/debt/index.html. If the SAM subsequently indicates that the Contractor no longer has delinquent debt, the Contractor may request the Contracting Officer to authorize payment by Governmentwide commercial purchase card.

(b) Contractor payment request. (1) Except as provided in paragraph (b)(2) of this clause, the Contractor shall make payment requests through a charge to the Government account with the third party, at the time and for the amount due in accordance with those clauses of this contract that authorize the Contractor to submit invoices, contract financing requests, other payment requests, or as provided in other clauses providing for payment to the Contractor.

(2) When the Contracting Officer has notified the Contractor that the Governmentwide commercial purchase card is no longer an authorized method of payment, the Contractor shall make such payment requests in accordance with instructions provided by the Contracting Officer during the period when the purchase card is not authorized.

(c) Payment. The Contractor and the third party shall agree that payments due under this contract shall be made upon submittal of payment requests to the third party in accordance with the terms and conditions of an agreement between the Contractor, the Contractor's financial agent (if any), and the third party and its agents (if any). No payment shall be due the Contractor until such agreement is made. Payments made or due by the third party under this clause are not payments made by the Government and are not subject to the Prompt Payment Act or any implementation thereof in this contract.

(d) Documentation. Documentation of each charge against the Government's account shall be provided to the Contracting Officer upon request.

(e) Assignment of claims. Notwithstanding any other provision of this contract, if any payment is made under this clause, then no payment under this contract shall be assigned under the provisions of the assignment of claims terms of this contract or the Assignment of Claims Act of 1940, (31 U.S.C. 3727, 41 U.S.C. 6305).

(f) Other payment terms. The other payment terms of this contract shall govern the content and submission of payment requests. If any clause requires information or documents in or with the payment request, that is not provided in the third party agreement referenced in paragraph (c) of this clause, the Contractor shall obtain instructions from the Contracting Officer before submitting such a payment request.

(End of clause)

Sections it refers to

  • 32.1110 Solicitation provision and contract clauses.

Sections that refer to it

  • 32.1108 Payment by Governmentwide commercial purchase card.
  • 32.1110 Solicitation provision and contract clauses.
  • 52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services.

← 52.232-35 Designation of Office for Government Receipt of Electronic Funds Transfer Information. · 52.232-37 Multiple Payment Arrangements. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.232-36 Payment by Third Party · SpendQuery