Defense Finance and Accounting Service(DFAS)
The agency providing finance and accounting services for DoD, including contract payment processing through WAWF and other invoicing systems.
Overview
The Defense Finance and Accounting Service (DFAS) is the DoD agency responsible for all finance and accounting operations across the Department of Defense. For government contractors, DFAS processes contract payments, manages progress payment requests, handles final contract closeout settlements, and operates the invoicing systems (primarily WAWF/iRAPT) through which contractors submit invoices and receive payment.
Why It Matters in GovCon
DFAS is where the money flows. Contractors must submit properly formatted invoices through DFAS systems to receive payment. Understanding DFAS payment processes, timelines, and requirements is critical for cash flow management. Payment delays often trace back to invoicing errors, missing documentation, or mismatches between invoice data and contract records in DFAS systems.
Key Details
- WAWF/iRAPT: Wide Area Workflow (now iRAPT) is the primary electronic invoicing and receiving system for DoD contracts.
- Payment Timelines: The Prompt Payment Act requires DoD to pay proper invoices within 30 days; interest accrues on late payments.
- Progress Payments: DFAS processes progress payment requests for large contracts, typically at 80% of incurred costs for large businesses and 85% for small businesses.
- Final Payment: Contract closeout and final payment processing can take months to years depending on audit requirements.
- Locations: DFAS operates from major centers in Columbus, Ohio; Indianapolis, Indiana; and Cleveland, Ohio.
Related Terms
- Wide Area Workflow (WAWF)
- Prompt Payment Act
- Progress Payments
- Invoice Processing
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