FAR Part 32 - Contract Financing

Which of the following statements concerning customary progress payments is true? (a) Customary progress payment rate is 90% (95% for small business concerns) (b) An unusual progress payment is defined as any rate that is 10% above or below the customary progress payment rate (c) Customary progress payment rate is 80% (85% for small business concerns) (d) When advance payments and progress payments are authorized under the same contract, a progress payment rate higher than the customary rate can be authorized

(c) Customary progress payment rate is 80% (85% for small business concerns)

Performance-based payments shall be used only: (a) When the contracting officer and the offeror are able to agree on the performance-based payment terms (b) When the contract is a fixed-price type contract (c) When the contract does not provide for other methods of contract financing (d) When all of the above conditions are met

(d) When all of the above conditions are met

Payment by the government is made on the _______ day after the designated billing office receives a proper invoice. a. 30th b. 3rd c. 13th d. 10th

a. 30th

No officer or employee of the Government may create or authorize an obligation in excess of funds available, otherwise they have violated the: a. Prompt Payment Act b. Anti-Deficiency Act c. Beeker Act d. Availaility of Funds clause

b. Anti-Deficiency Act

A contractor may assign monies due or to become due under a government order/contract only when the contract value totals _________ or more. a. $25,000 b. $100 c. $1,000 d. $500

c. $1,000

What is the customary progress payment percentage rate for small business concerns? a. 10% b. 15% c. 85% d. 50%

c. 85%

What is a payment for accepted supplies or services, including payments for accepted partial deliveries? a. Commercial payments b. Progress payments c. Delivery payments d. Final/partial acceptance

c. Delivery payments

Which contract financing arrangement places the obligation on the agency? a. Advance Payment b. Advance Payment for non-commercial items c. Loan Guarantee for defense production d. Private Financing

c. Loan Guarantee for defense production

Which of the below is the correct order of preference under FAR Part 32: Contract Financing? a. Customary contract financing, unusual contract financing, loan guarantees, advance payments, private financing without government guarantee. b. Private financing without government guarantee, loan guarantees, customary contract financing, advance payments, unusual contract financing. c. Private financing without government guarantee, customary contract financing, loan guarantees, unusual contract financing, advance payments. d. Advance payments, loan guarantees, private financing without government guarantee, customary contract financing, unusual contract financing.

c. Private financing without government guarantee, customary contract financing, loan guarantees, unusual contract financing, advance payments.

Commercial Advance Payment shall not exceed what percentage of the contract price? a. 10% b. 5% c. 1% d. 15%

d. 15%

What is the customary progress payment rate for a large business concern? a. 15% b. 50% c. 25% d. 80%

d. 80%

The least preferred method of contract financing is: a. Unusual contract financing b. Loan guarantees c. Private financing d. Advance payments

d. Advance payments

Payment from the government will be based on receipt of a proper invoice and ____________. a. Interest b. Payment due dates c. Delivery criteria d. Satisfactory contract performance

d. Satisfactory contract performance