How Do I Get Paid? Invoicing and Payment in Government Contracting
One of the most misunderstood aspects of the government contracting landscape is the subject of payment. We counsel small business owners who state something like this: “the government pays too slowly" or "The process is too complicated.”
The question is are those statements true?
All procurement agencies (local, state and federal) have policies and procedures which must be adhered to for them to remit payment to their suppliers, vendors, and contractors. Often the delayed payment is a matter of not following their requirements for invoice submittal, not the agencies’ desire to delay payment.
So, this being said let’s discuss a few requirements of procurement agencies (local, state and federal).
The city of Little Rock. The city shall not be invoiced in advance of delivery and acceptance of any goods or services. Remember, goods and services first, invoice later.
Pulaski County. Your invoice must be itemized and include prices of individual items; statements showing only a balance due cannot be paid. Remember, goods and services must be itemized.
The state of Arkansas. Selected contractor must be registered to receive payment and future bid solicitation notifications. Remember, no vendor registration, no payment.
The federal government. Deductions shall be made for work not completed or performed. Remember, no work, no payment.
The federal government also requires prompt payment to small businesses within 30 days or less. Review the requirements.
So, what are the final words on invoicing and payment? Attention to detail. The invoices, no matter what procurement agencies (local, state and federal), must be completed as required. Lack of attention to details results in delay of payment!
To learn more about invoicing and payment join us on Jan. 13, 2022 as we present: How Do I Get Paid? Invoicing & Payment in Government Contracting.REGISTER
To learn more about the Arkansas Procurement Technical Assistance Center and the many ways that our counselors can help secure government contracts, connect with us by calling 501-671-2390 or by e-mailing email@example.com.