1531 Payments

Question 1

What part of the FAR covers contract financing?

Answer 1

Part 32

Question 2

What are the two types of contract payments?

Answer 2

• Delivery payment means a Government disbursement of monies to a contractor under a contract or other authorization after acceptance supplies or services by the Government
• Contract financing payment means an authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services by the Government

Question 3

What is Contract Financing?

Answer 3

Government authorized payments to contractors prior to the acceptance of supplies or services by the Government.

Question 4

Why does the Government provide contract financing?

Answer 4

• To expedite the performance of essential contracts.

* Increase competition

Question 5

What types of contract financing are available?

Answer 5

• Advance payments (Least preferred financing method)
• Performance-based payments; (Preferred financing method)
• Commercial advance and interim payments;
• Progress payments based on cost ;
• Progress payments based on a percentage or stage of completion; and
• Interim payments under a cost reimbursement contract

Question 6

What is the least preferred contract financing method?

Answer 6

Advanced Payment

Question 7

The prompt payment acts requires the government must pay with ______ days after the receipt of a proper invoice

Answer 7

30 (14 days for construction)

Question 8

If a proper invoice is not submitted, the designated billing office must return it within ___ days after receipt

Answer 8

7 Days