Contract Financing & Payments Flashcards

Under FAR 32.202, which contract types are eligible for performance-based payments?

Answer: Fixed-price contracts only

Performance-based payments are authorized only for fixed-price contracts per FAR 32.202-1, not for cost-reimbursement contracts.

The 'unusual progress payment' rate that may be authorized for small businesses under FAR 32.501-2 can be as high as:

Answer: 90%

FAR 32.501-2 permits unusual progress payment rates up to 90% for small businesses in exceptional circumstances.

When the government makes an erroneous overpayment to a contractor, the Debt Collection Improvement Act requires the government to:

Answer: Demand repayment and charge interest from the date of the overpayment

The Debt Collection Improvement Act requires the government to demand repayment of erroneous overpayments and to assess interest from the date the overpayment was made.

A contractor invoicing under a cost-reimbursement contract must submit a completion invoice or final invoice within how many days after contract completion under FAR 52.216-7?

Answer: 120 days

FAR 52.216-7 requires contractors to submit a completion/final invoice within 120 days after contract completion to enable final settlement.

The 'fast payment' procedure under FAR 13.402 allows payment before the government verifies receipt of goods when:

Answer: The contract is for individual purchases not exceeding $35,000 and the contractor certifies delivery

FAR 13.402 permits fast payment for individual purchases at or below $35,000 when the contractor agrees to replace, repair, or repay if the government later finds non-delivery.

Under FAR 32.112, financing payments made under a subcontract must flow from the prime contractor to the subcontractor within how many days of the prime receiving financing from the government?

Answer: 7 days

FAR 32.112 requires prime contractors to pay financing to subcontractors within 7 days of receiving contract financing payments from the government.

Which clause is required in all contracts that include progress payment provisions to give the government a security interest in property?

Answer: FAR 52.232-16, Progress Payments

FAR 52.232-16 is the mandatory clause included in contracts with progress payments that establishes the government's title to work in process and security interest.