Commercial Contract Financing

Slides:



Advertisements
Similar presentations
ISTISNA’.
Advertisements

Fixed price contract: A contract that provides a price for each procurement item obtained under the contract.
POLICY AND OVERSIGHT DIVISION (POD) February 2014 Documentation of Evaluation for Award 1.
I n t e g r i t y - S e r v i c e - E x c e l l e n c e 17 th Contracting Squadron 1 Termination of Commercial Contracts.
CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS ( ) (FEB 2007)
Massachusetts Department of Elementary & Secondary Education
0 Cost, Price, and Finance FAR Cases of Interest Date: 24 October 2006 Bill Sain Senior Procurement Analyst Defense Procurement and Acquisition Policy,
I n t e g r i t y - S e r v i c e - E x c e l l e n c e Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts Date: 24 Jan 07 POC:
1 Case Title: Training for Contractor Personnel Interacting with Detainees (DFARS Case 2005-D007)  Type:Final Rule Published 9/8/06 -Received one response.
1 Case Title: Combating Trafficking in Persons ( Implementation of Section 3(b) of the Trafficking Victims Protection Reauthorization Act of 2003) (FAR.
OVERSIGHT & COMPLIANCE BRANCH (OCB) INVOICE PAYMENTS February 16,
IMPREST FUND TRAINING Updated 27 Oct IMPREST FUND DEFINITION Cash fund of a fixed amount, established by an advance of funds, from an agency finance.
COMMERCIAL “SOLE SOURCE” PROPOSAL ANALYSIS ROADMAP 1. Is information available within the Government? Step 1 – Information within the Government If Yes.
Contract Financing Theresa A. Stevens March 12, 2007 Part 2 Non-Commercial Item Purchase Financing FAR Subpart 32.1 PIP Level II Presentation.
Contract Pricing – Certified Cost or Pricing Data
I n t e g r i t y - S e r v i c e - E x c e l l e n c e PPNM’s/PNM’s Date: 29 Dec 2006.
Introductory to the “Basics” of Contract Types and Their Impact in the Management of Government Property Presented by: Fay K. Schulte, CPPM.
Selling to the Federal Government NATIONAL MATCHMAKING CONFERENCE CINCINNATI, OH SBA OFFICE OF GOVERNMENT CONTRACTING.
Contractual Assistance Procurement Methods 4 Set-aside awards 4 Sole source awards 4 Awards through full and open competition using the price preference.
FAR PART 45 – Government Property
1 Amy Williams, Senior Procurement Analyst February 5, 2008 Defense Acquisition Regulations System
FAR Part 2 Definitions of Words and Terms. FAR Scope of part (a)This part – (1) Defines words and terms that are frequently used in the FAR; (2)
Rabbanai T. Morgan Chief, Contingency Contracting Team Revised 6 July 2005 Lease vs. Purchase.
Center of Islamic Finance COMSATS Institute of Information Technology Lahore Campus 1 Adopted from open source lecture of Meezan Bank. Customized for best.
Contractor Business Systems (CBS) Rule Eric Fassett.
COMPETITION REQUIREMENTS
Selling to the Federal Government NATIONAL MATCHMAKING CONFERENCE CHICAGO, IL SBA OFFICE OF GOVERNMENT CONTRACTING.
Don Mansfield Professor of Contract Management Defense Acquisition University.
Implementing the Regulatory Flexibility Act. 2 Background The Regulatory Flexibility Act (5 U.S.C. 601–612) requires Federal agencies to— –Consider the.
Rabbanai T. Morgan Chief, Contingency Contracting 26 May 2005 Commercial Contract Financing.
Policies and procedures for developing acquisition plans; determining whether to use commercial or Government resources; whether it is more economical.
SIMPLIFIED ACQUISITION PROCEDURES Revised FAR Part 13.
Rabbanai T. Morgan Chief, Contingency Contracting Element February 2005 Letter Contracts.
1 And...the Rules-of-the-Road on the Promulgation of Government Contract Clauses/Regulations Are...? Charles E. Rumbaugh Rumbaugh ADR Offices
Primer Briefing “Brand Name or Equal” Purchase Descriptions Ask a Professor - # Date:
(sale on deferred payment basis)
New Time and Material Requirements Glenn Baer March 2007.
1 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT.
1 Amy Williams, Senior Procurement Analyst March 25, 2008 Defense Acquisition Regulations System
Contracting 101 Federal Supply Service February 16, 2005.
Office of Procurement Services.  Vendor Application Website: 
Introduction to Procurement for Public Housing Authorities Sealed Bids Unit 5.
GSA Office of the Chief Acquisition Officer SIZE OF BUSINESS RE-REPRESENTATION.
1 Consent to Subcontract Breakout Session # D12 Name: Rita Wells Daniel Johnson Anthony Simmons Date:July 12, 2011 Time:11:15 – 12:30.
FAR Part 38 Federal Supply Schedule Contracting 1.
Small Business and Subcontracting. Subcontracting for Small Business 6 steps to successful subcontracting 6. Report Contractor performance 1. Consider.
1. 2 Cost & Price Analysis Breakout Session # 312 Beverly Arviso, CPA, Fellow, CPCM, CFCM, Arviso, Inc. Melanie Burgess, CPA, CFCM, Burgess Consulting,
Presented to: By: Date: Federal Aviation Administration Ready for Cost Type Contracts - Accounting Systems and Administration Small Business Vendor Day.
Office of Management and Enterprise Services Central Purchasing Division 2013/2014session legislative changes The Central Purchasing Act 74 O.S. §85.1.
Contract Financing.
Evaluating Small Business Participation
Consent to Subcontract
What is Contract Financing?
Blanket Purchase Agreements
Administration of a FIDIC Contract - Commencement Date to + 28 Days -
FAR Part 2 - Definitions of Words and Terms
Administrivia Settings Controls Attendees Record
Administration of a FIDIC Contract - Financial Management
Small Business and Subcontracting.
Department of Community Development
First Article Test (FAT) / Production Lot Test (PLT)
Cost or pricing data John Cancellara 7 March 2018.
THIS IS A GENERAL REFERENCE ONLY – SEE NOAA APG CHAPTERS for specific guidance and references to applicable statute, regulation, DOC policy, and NOAA policy.
Letter Contracts Rabbanai T. Morgan
A Pricing Perspective on Contract Cost/Price Analyst
Construction Contract Administration
Type: Final Rule Published 9/8/06
Certified Cost or Pricing Data vs
DLA Land and Maritime Pricing Overview
FAR part 1.
Presentation transcript:

Commercial Contract Financing . Rabbanai T. Morgan Chief, Contingency Contracting 26 May 2005

Commercial Contract Financing CPT Kayes, I need your assistance in understanding what can be done ASAP to secure purchase of the fire trucks from the United Arab Emirates For the Civil Defense Forces (Fire Department).  It’s my Understanding that the vendor is willing to sell the Coalition Forces the fire trucks and is asking for a down payment of an estimate 10% – 15% before they are willing to ship the truck which seems reasonable given that the total package excluding shipping is $790,000. Owen Widmer Major, United States Army 426th Civil Affairs Battalion .

Commercial Contract Financing Overview Governing Directives Applicable Definitions Policy, Prohibitions, and Authorizations Security for Advance Payments Contract Financing Terms Provisions and Clauses Payment of Commercial Financing Payments Unusual Contract Financing Scenarios Summary .

Commercial Contract Financing Governing Directives FAR 32 – Contract Financing Payments DFARS 232 – Contract Financing FAR Part 2 - Definitions of Words and Terms FAR Part 12 - Acquisition of Commercial Items FAR 28.105-1, Advance Payment Bonds Agency Regulations .

Commercial Contract Financing Definitions “Contract financing payment” means an authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services by the Government. (Includes advance payments) .

Commercial Contract Financing Definitions “Commercial advance payment,” …, means a payment made before any performance of work under the contract. These payments are contract financing payments for prompt payment purposes (i.e., not subject to the interest penalty provisions of the Prompt Payment Act) .

Commercial Contract Financing Policy It is the responsibility of the contractor to provide all resources needed for performance of the contract. Thus, for purchases of commercial items, financing of the contract is normally the contractor’s responsibility. However, in some markets the provision of financing by the buyer is a commercial practice. In these circumstances, the contracting officer may include appropriate financing terms in contracts for commercial purchases when doing so will be in the best interest of the Government. .

Commercial Contract Financing Prohibition Unless agency regulations otherwise permit, contract financing shall not be provided for purchases made under the authority of Part 13. .

Commercial Contract Financing Authorizations Commercial interim payments and commercial advance payments may be made under the following circumstances -- Contract item financed is commercial supply or service; Contract price exceeds the simplified acquisition threshold; CO determines it is appropriate/customary in the commercial marketplace to make financing payments for the item; Form of contract financing is in the best interest of Gov’t Adequate security is obtained Prior to any performance of work, aggregate of commercial advance payments shall not exceed 15% of the contract price .

Commercial Contract Financing Security for Government Financing 10 U.S.C. 2307(f) and 41 U.S.C. 255(f) require the Government to obtain adequate security for Government financing. The contracting officer shall specify in the solicitation the type of security the Government will accept. If the Government is willing to accept more than one form of security, the offeror shall be required to specify the form of security it will provide. If acceptable to the contracting officer, the resulting contract shall specify the security .

Commercial Contract Financing Security for Government Financing Subject to agency regulations, CO may determine the offeror’s financial condition to be adequate security Assessment of the contractor’s financial condition shall consider both net worth and liquidity. Offeror must agrees to provide additional security should that financial condition become inadequate as security Offeror’s financial condition must continue to provide adequate security to cover any amount of unliquidated contract financing .

Commercial Contract Financing Security for Government Financing Other forms of security Lien against work in progress, contractor’s plant, inventory Irrevocable letter of credit from federally insured financial institution Bond from surety that gaurantees repayment of unliquidated contract financing Guarantee of repayment form individual/corporation connected by significant ownership to the contractor Title to contractor identified asset .

Commercial Contract Financing Contract Financing Terms Considered in conjunction with/pursuant to market research Specified by CO in solicitation Not a factor in evaluation of proposals Alternative financing terms will not to be accepted Failure to use CO specified contract financing doesn’t render offer nonrepsonsive .

Commercial Contract Financing Contract Financing Terms Offeror Proposed Each offeror may propose contract financing terms CO must determine which terms in best interest of the Government Incorporated into resulting contract .

Commercial Contract Financing Solicitation Provisions/Contract Clauses 52-212-4(i), Payment CO constructed solicitation provision and contract clause if contract provides for contract financing 52.232-31, Invitation to propose finance terms (offeror proposed commercial contract financing) 52.232-29, Terms for Financing of Purchases of Commercial Items .

Commercial Contract Financing Payment of Contract Financing Payments CO responsibility to review, approve, and transmit contract financing requests to payment office Approval shall specify amount to be paid, necessary contractual info, and accounts to be charged for payment Optional - 52.213-4, Terms and Conditions -- Simplified Acquisitions (Other Than Commercial Items)

Commercial Contract Financing Unusual Contract Financing Any contract financing arrangement not in accord with the requirements of agency regulations or this part is unusual contract financing and requires advance approval in accordance with agency procedures. If not otherwise specified, such unusual contract financing shall be approved by the head of the contracting activity. .