FAR Part 32

Payments are generally made on what day after the designated billing office receives a proper invoice from the contractor?

30th day. FAR 32.9

Customary percentage rate for progress payment is

80% for large business concerns & 85% for small business concerns. FAR 32.5

What is the least preferred method of contract financing?

Advance Payments for Non-commercial items. FAR 32.4

Advances of money by the government to a prime contractor is

Advance payments. FAR 32.1

No officer or employee of the government may create or authorize an obligation in excess of funds available, or in advance of appropriations unless otherwise authorized by law is described in the

Anti-Deficiency Act. FAR 32.7

The transfer or making over by the contractor to a bank, trust company, or other financing institution, as security for a loan to the contractor, of its right to be paid by the government for contract performance, where the value exceed $1,000, is called

Assignment of Claims. FAR 32.8

The CO may use performance-based payments only if the following conditions are met

Co & offeror are able to agree on terms; contract is fixed-price type contract; indefinite-delivery and other contracts, the individual order doesn't provide for progress payments. FAR 32.10

For commercial services/supplies, what kind of payment made before any performance of work under the contract, where an aggregate payment shall not exceed 15% of the contract price, and payments are not subject to FAR 32.4?

Commercial Advance Payment. FAR 32.2

A payment that is not a commercial advance payment or a delivery payment and is given to the contractor after some work has been done is called a

Commercial Interim Payment. FAR 32.2

Which of the following statements concerning customary progress payments is true?

Customary progress payment rate is 80% (85% for small business concerns). FAR 32.501-1(a-d)

A payment for accepted supplies or services, including payments for accepted partial deliveries is call a

Delivery Payment. FAR 32.2

Any transfer of funds, other than a transaction originated by cash, check, or similar paper instrument, initiated through an electronic terminal, telephone, computer, or magnetic tape, is called

Electronic Funds Transfer (EFT). FAR 32.11

Guarantees backed by the Federal Reserve designed to enable contractors to obtain financing from private sources is

Loan guarantees. FAR 32.1

When money is given to a prime for part of the supplies and services accepted by the government is

Partial payments. FAR 32.1

A payment made on the basis of performance measured by objective, quantifiable methods, accomplishment of defined events, or other quantifiable measure of results is

Performance-based payments. FAR 32.1

The preferred financing method when the contracting officer finds them practical & the contractor agrees to their use is

Performance-based payments. FAR 32.10

What does the government consider the most perferred vendor financing?

Private financing without government guarantee. FAR 32.1

Payments that are based on a percentage or stage of completion is

Progress payments. FAR 32.1

Any contract financing arrangement that deviates from customary contract financing procedures delineated in FAR 32.113 is called

Unusual contract financing. FAR 32.1

Contracts that contain a Limitation of Cost or Funds clause must be monitored closely. Upon learning that the contractor is approaching the estimated cost or limit of funds allotted, the CO must promptly notify the contractor in writing that

additional funds have been allotted, or the contract will not be further funded, or the contract is to be terminated, or the government is considering whether to allot additional funds. FAR 32.7

When in the best interest of the government, a CO may include appropriate financing terms in contracts for

commercial items. FAR 32.2

A subject included in the market research to determine the extent to which other buyers provide

contract financing. FAR 32.2

A contract funded by annual appropriations may not generally

cross fiscal years. FAR 32.7

Types of financing that the government perfers a vendor obtain besides Private financing are (in order)

customary contract financing, loan guarantee, unusual contract financing, advance payments. FAR 32.1

The basis for performance-based payments may be either specifically described

events or some measurable criterion of performance. FAR 32.10

Solicitations and contracts must specify payment

procedures, payment due dates, & interest penalties for late invoice payment. FAR 32.9

Before executing a contract, the CO must obtain written assurance that adequate funds are available from

responsible fiscal authority. FAR 32.7

Performance-based payments shall be used only when

the CO & offeror are able to agree on terms; the contract is a fixed-price--type contract; the contract does not provide for other methods of contract financing. FAR 32.1003