Mandatory Procedures |
[Revised November 7, 2012]
MP5332.1 Non-Commercial Item Purchase Financing
(1) Since unusual contract financing arrangements may significantly impact the pricing of a contract, the contracting officer must submit any unusual financing requests by a contractor to the MAJCOM/DRU or AFISRA Contracting Staff for consultation.
(2) If the MAJCOM/DRU or AFISRA SCO determines unusual financing is required, it must submit a memorandum outlining the pertinent facts together with a recommendation on the action to be taken through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB no later than 30 days before the needed effective date of the proposed financing arrangement.
(3) Since the financial health of a firm significantly impacts the ability of the contractor to perform, the contracting officer must promptly report known adverse developments affecting a contractor or subcontractor to the contract administration office, other interested Government parties, and their MAJCOM/DRU or AFISRA SCO.
(4) If there is an adverse development affecting a contractor receiving a bank loan guaranteed by the Air Force, progress payments, or advance payments, the contracting office must report the adverse development, its expected impact upon continued satisfactory performance under the contract, remedial actions taken to date (if any), and any recommendations for further action through the MAJCOM/DRU or AFISRA SCO to SAF/AQC, safaqc.workflow@pentagon.af.mil.
MP5332.2 Commercial Item Purchase Financing
(1) The contracting officer must submit all commercial interim payment requests and commercial advance payment requests to the MAJCOM/DRU or AFISRA SCO. These requests, in turn, must be forwarded through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB for review and approval.
(1) Except for educational and non-profit organizations, the contracting officer must submit each advance payment request involving only a single contract to the MAJCOM/DRU or AFISRA SCO. This request, in turn, must be forwarded through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB for review and approval.
(2) For educational and non-profit organizations, the contracting office must forward the advance payment request to the Director of Contracts, Air Force Office of Scientific Research (AFOSR/PK), 801 North Randolph Street, Room 732, Arlington, VA 22203-1977.
(a) AFOSR/PK is the office responsible for the administration of contracts and grants issued by the Air Force Office of Scientific Research, which sponsors and supports basic research by educational and research institutions. Thus, all requests for advance payments requested by educational and research institutions are processed by AFOSR/PK.
(b) If possible, a single disbursing office must disburse funds for all Air Force contracts in an advance payment pool.
(c) New contracts awarded to educational and research institutions having an advance payment pool agreement must also be included in the existing pool agreement.
(i) A prior clearance must be obtained from AFOSR/PK before including contracts in an advance payment pool agreement.
(ii) A request for clearance must identify the originating office, the name of institution, the contracting officer, the adjustment of funding by supplemental agreement/amendment, the incremental funding, the duration and end-date of contract, the type of services/supplies to be delivered, the type of contract, the contract number, and the accounting and finance office shown in the advance payment pool agreement.
(d) Educational and research institutions desiring an advance payment pool agreement must submit their request to the contracting officer. The documentation supplied by the institution to justify an advance payment pool agreement should include the following:
(i) Letter of request accompanied by the amount proposed for the advance payment pool limitation;
(ii) Schedule of contracts to be covered by the agreement, with the following information for each contract:
(A) Contract number;
(B) Contract price;
(C) Period of performance;
(D) Government buying office;
(E) Designated Government contract administration office; and
(F) Designated Government payment office;
(iii) Cash flow statement that illustrates cash expenditure requirement on a contract-by-contract basis for the ensuing 12 months, using the following columnar headings:
(A) Column A - Contract Number;
(B) Column B - Contract Expense Incurred To Date;
(C) Column C - Estimated Contract Expense To Be Incurred;
(D) Columns D through O – 12-Month Contract Expense Forecast
(iv) Any other information that would demonstrate the need for an advance payment pool agreement.
(e) The contracting officer must review the institution’s request and supporting documentation and forward the request to AFOSR/PK. AFOSR/PK reviews the justification for completeness and compliance with the FAR. When satisfied that the requirements have been met, AFOSR/PK forwards the request and other related documentation through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB. The following is a list of actions that may be performed by the Contract Administration Office or the Air Force Accounting and Finance Office:
(A) Receive advance payment requests from the institution;
(B) Ensure requests are properly supported and justified;
(C) Approve advance payment requests;
(D) Ensure pool funds are used for intended purposes;
(E) Obtain repayment of unliquidated advance payments in excess of requirements or advance payment pool limit, when advised of such excess by the approving office;
(F) Administer default and insurance provisions; and
(G) Periodically determine status of all contracts covered by the advance payment pool agreement.
(f) The Air Force accounting and finance office is responsible for the disbursing functions of the advance payment pool agreement. Specific duties include --
(A) Advancing funds to the institution;
(B) Ensuring that funds advanced do not exceed the advance payment pool limitation or the combined unpaid price of covered pool contracts;
(C) Maintaining accounting control over funds advanced, amounts liquidated, and unliquidated balances; and
(D) Receiving invoices from the institution and making payments against individual contracts.
(g) SAF/FMPB will evaluate the request to determine if the advance payment pool agreement is justified. Assistance may be solicited from other sources such as contracting officers, auditors, disbursing officers, and, if necessary, field visits to the institution. When approved, SAF/FMPB findings, determinations, and authorizations for advance payments and the advance payment pool agreement are forwarded to AFOSR/PK. Upon receipt of the signed D&F, AFOSR/PK takes necessary actions to award the advance payment pool agreement and incorporate it into affected contracts. AFOSR/PK will ensure that the clause at DFARS 252.232-7000, Advance Payment Pool, is included in each contract covered by the agreement.
(h) The contracting officer must amend affected contracts, as appropriate, in order to incorporate the advance payment pool agreement.
MP5332.501-2 Unusual Progress Payments
(1) The contracting officer must submit contractor requests for unusual progress payments to the MAJCOM/DRU or AFISRA SCO.
(2) The MAJCOM/DRU or AFISRA SCO recommends to SAF/AQC whether the request for unusual progress payments should be approved. All requests for unusual progress payments, whether recommended for approval or disapproval, must be promptly forwarded through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB with all pertinent data supporting the recommended action.
(3) When estimated increases totaling $20 million or more have been made under a contract, the contracting officer must notify SAF/FMPB.
(4) In obtaining approval by SAF/FMPB of unusual progress payments, follow the procedures for obtaining approval of advance payment pool for educational and research institutions.
(5) When seeking approval to provide progress payments to contractors of the type described in FAR 32.502-2 (c), the contracting officer must submit the necessary information directly to SAF/FMPB.
(1) Contracting officers must retain a copy of all contract debt documentation in the contract file and must keep the contract file open until the debt is collected and/or written-off.
(2) Payment information for the demand for payment letter:
(a) Make the check payable to the “Treasurer of the United States” and to remit the check, along with a copy of the demand for payment, directly to:
a. For MOCAS paid contracts, remit payment to: DFAS Columbus Disbursing Division: DFAS-Columbus, ATTN: DFAS-JDCBB, P.O. Box 182204, Columbus, OH 43218-2204.
b. For Non-MOCAS contracts, remit payment to the payment office identified in the contract (DFARS 232.610(a)(i)(B)).
(3) When a request for deferment of a contract debt is received from a contractor, the recipient office must forward the request for deferment to the Chief of Contracting at the MAJCOM/DRU or AFISRA SCO. The MAJCOMDRU or AFISRA SCO must submit, on a priority basis, an evaluation of the contractor’s request with the necessary reporting information and recommendation through SAF/AQC, safaqc.workflow@pentagon.af.mil, to SAF/FMPB.