Winning a federal contract presents a great opportunity, but what should you do if the government doesn’t pay you on time—or at all? While the federal government is generally reliable when it comes to payments, delays or disputes can happen, particularly in the current political climate. If you find yourself facing non-payment under your contract, here’s a guide on how to address the issue:
- Review Your Contract
Start by carefully reviewing the payment terms outlined in your contract. This includes checking the deadlines, invoicing requirements, and any clauses related to payment disputes. Federal contracts are typically governed by the Federal Acquisition Regulation (FAR), which provides guidelines on when and how payments should be made.
- Follow Up with the Contracting Officer
Your contracting officer is your primary point of contact in matters related to your contract. If a payment is overdue, reach out with a formal inquiry to check the status of your invoice. In some cases, delays occur due to administrative errors, which can be resolved promptly. If your inquiry doesn’t yield a response, consider having your attorney contact the agency’s counsel to address the issue.
- Submit a Proper Invoice
Ensure that your invoice adheres to all federal requirements, including:
- Correct formatting according to FAR 32.905
- Accurate payment information
- Submission via the designated payment portal (such as Wide Area Workflow (WAWF) for Department of Defense contracts)
- File a Claim Under the Contract Disputes Act
If informal attempts to resolve the issue fail, you have the option to file a formal claim under the Contract Disputes Act (CDA). For a formal claim, you’ll need to prepare a written statement (typically with legal counsel’s help) that clearly outlines the amount owed, the basis for the payment, cites relevant law, and certifies the claim if necessary. As the U.S. Court of Appeals for the Federal Circuit has made clear, “a ‘pure breach’ [of contract] claim accrues when a [contractor] has done all [they] must do to establish [their] payment and the [government] does not pay.” Brighton Village Assoc. v. United States, 52 F.3d 1056, 1060 (Fed. Cir. 1995). The contracting officer is required to respond within 60 days.
- Escalate the Issue
If the contracting officer denies your claim or fails to respond, you can escalate the matter by appealing to one of the following entities:
- The Civilian Board of Contract Appeals (CBCA) for civilian contracts
- The Armed Services Board of Contract Appeals (ASBCA) for defense contracts
- The U.S. Court of Federal Claims for both civilian and defense contracts
Final Thoughts
Non-payment by the government is becoming a more frequent issue, but our DC Employment lawyers are here to help. By understanding your contract, maintaining proper documentation, keeping communication open with your contracting officer, and following the dispute resolution processes, you can increase your chances of receiving the payment you’re owed.