Payment & Financing (Part 32)

FAR 52.232-33

Payment by Electronic Funds Transfer—System for Award Management

All Federal contract payments are made by EFT to the bank account on file in SAM (with rare statutory exceptions). The contractor is responsible for keeping the banking information in SAM current and complete.

FAR / DFARS Part
FAR Part 32 — Contract Financing
Prescribed By
FAR 32.1110(a) — Required in solicitations and contracts requiring EFT through SAM.
Flow-down to Subcontracts

Not flowed down.

What this clause requires

  • 1Maintain accurate EFT (banking) information in SAM throughout performance.
  • 2Update SAM EFT data immediately upon any change of bank account.
  • 3Contractor bears the cost / delay of payments to incorrect accounts due to stale SAM data.
  • 4Invoices must be submitted per the contract's invoicing instructions (often via IPP or WAWF/PIEE for DoD).

When this clause applies

Almost every Federal contract.

Common pitfalls

!Old bank account closed; payments returned and re-issued only after SAM update — sometimes weeks of delay.
!Bank-account fraud — only update SAM banking info from a known, secure session; CO will never call to request a change.
!Multiple subsidiaries under same parent — confirm UEI/CAGE map to the correct EFT account for each contract.

Proposal-team checklist

  • ☐Verify SAM EFT data the week of submission and the week of award.
  • ☐Restrict access to SAM banking edits to a small, trained group; require multi-person approval.
  • ☐Set a banking-change-control runbook: who can request, who approves, two-step verification.

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FAQ

Can I be paid by check?

Only in narrow statutory exceptions (typically natural-disaster waivers or for entities that genuinely cannot use EFT). 99%+ of payments are EFT to the SAM-on-file account.

How do I update banking info?

Log into SAM.gov as Entity Administrator and update under the Financial Information section. Changes take effect within 24-48 hours. Confirm with the agency before invoicing.

Related clauses

FAR 52.204-7
System for Award Management
FAR 52.204-13
SAM Maintenance

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Reference content based on the Federal Acquisition Regulation and DFARS as of June 2026. Always verify the current clause text at acquisition.gov before relying on it for an actual submission. Educational reference; not legal advice.