MP5332.470
Advance Payment Pool
[2013 Edition]
(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 to SAF/FMPA. 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/FMPA 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/FMPA 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.