Term
| Partial payments, progress payments based on 5 or stage of completion, Loan guarantees, advance payments, progress payments based on cost |
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Definition
| Types of contract financing |
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Term
| Why can agencies only finance contractor working capital but not expansion of contractor owned facilities or acquisition of fixed assets? |
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Definition
| Because contract financing is self-liquidating through contract performance. |
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Term
| Advances of money by the Government to a prime contractor |
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Definition
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Term
| Payments made on the basis of costs incurred by the contractor as work progresses |
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Definition
| Progress payments based on costs |
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Term
| Guarantees backed by the Federal Reserve, designed to enable contractors to obtain financing from private sources |
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Definition
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Term
| Payment that is more of a financing method |
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Definition
| Partial payments for accepted supplies or services, or progress payments based on a % or stage of completion. |
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Term
| Payments made on the basis of performance measured by objective, quantifiable methods. |
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Definition
| Performance-based payments |
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Term
| Private financing without guarantee, customary contract financing, loan guarantees, unusual contract financing, advance payments |
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Definition
| Order of contract financing preference |
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Term
| Any contract financing arrangement that deviates from customary contract financing procedures in FAR 32.113 |
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Definition
| Unusual contract financing |
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Term
| IF the contractor is a small business concern, KO must give special attention to meeting the contractor's financing need. |
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Definition
| Small business financing considerations |
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Term
| A ____ of _____ from the Small Business Administration has no bearing on the contractor's need for or entitlement to contract financing. |
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Definition
| Certificate of Competency |
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Term
| For _____________ item financing, the contractor has normal responsibility. |
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Definition
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Term
| In what circumstance would commercial item financing by the Government be appropriate? |
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Definition
| When it is common practice in a market for the buyer to provide financing, and when doing so is in the best interest of the Government. |
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Term
| When can commercial interim and commercial advance payments be made? |
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Definition
1. If the contract item financed is a commercial supply or service;
2. The contract price exceeds the SAT;
3. The KO determines it is customary practice;
4. It is in the best interest of the Government;
5. Adequate security is obtained;
6. Aggregate of advance payments shall not exceed 15% of the contract price (in a competitive environment) |
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Term
| Can Commercial Interim Payments be made to a contractor in a sole source environment? |
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Definition
| Yes. IF adequate consideration is obtained, and concurrence is obtained from the payment office regarding liquidation provisions (FAR 32.206(e)) |
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Term
| What are Commercial Advance Payments, Commercial Interim Payments, and Commercial Delivery Payments |
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Definition
| Types of Payments for Commercial Item Purchases |
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Term
| Payment made before any performance of contracted work (not to exceed 15% of contract price) |
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Definition
| Commercial Advance Payment (not subject to FAR 32.4) |
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Term
| Interim payment given to the contractor after some commercial work has been done |
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Definition
| Commercial Interim Payment (if not an advance payment or delivery payment) |
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Term
| Payment for accepted supplies or services; including payments for accepted partial deliveries |
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Definition
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Term
| What should be done (before award) to determine the extent to which other buyers provide financing, the level normally provided, and the basis and frequency for payment. |
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Definition
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Term
| what OMB Circular provides "Guidelines and Discount rates for Benefit-Cost Analysis of Federal Programs?" |
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Definition
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Term
| The contracting officer must calculate the ______ ______ of financing arrangements in a probpopsal using the nominal discount rate in Appendix C of OMB Circular A-94? |
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Definition
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Term
| What bank is authorized to act on behalf of guaranteeing agencies (such as DoD) as fiscal agents of the United STates in the making of loan guarantees for defense production? |
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Definition
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Term
| Essentially the same as conventional loans made by private financial institutions, except that the guaranteeing agency is obligated, on demand of the lender, to purchase a stated perentage of the loan and to share any losses in the amount of guaranteed percentage. |
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Definition
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Term
| The least preferred method of contract financing. |
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Definition
| Advance payments for non commercial items (FAR 32.4) Note: Should not be authorized if any other type of financing is reasonably available. FAR 32.403 limits applicability |
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Term
| What is the customary progress payment rate for large business concerns? |
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Definition
| 80% Anything greater is considered "unusual" |
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Term
| What is the customary progress payment rate for small businesses? |
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Definition
| 85% Any percentage greater is considered "unusual" |
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Term
| _________ Progress payments may be applied only when the contract necessitates predlivery expenditures that are large in relation to contract price. |
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Definition
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Term
| Unusual progress payments can only be applied when these 3 requirements are met: |
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Definition
1. When the contract necessitates predelivery expenditures that are large in relation to contract price, contractor's working capital and credit;
2. The contractor fully documents an actual need to supplement private financing;
3. The contractor's request is approved by the HCA. |
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