COR Invoice Review & Payment Processing Flashcards

What type of billing is used on cost-reimbursement contracts where contractors bill as costs are incurred?

Answer: Cost vouchers

Cost vouchers are the invoicing mechanism used on cost-reimbursement contracts to bill the government as allowable costs are incurred.

The COR discovers a contractor has overbilled for labor hours on the most recent invoice. What is the COR's first action?

Answer: Document the discrepancy and notify the Contracting Officer

The COR must document the overbilling discrepancy in writing and immediately notify the Contracting Officer, who has authority to reject or adjust the invoice.

What interest rate applies when the government fails to pay a proper invoice on time under the Prompt Payment Act?

Answer: Treasury's Current Value of Funds Rate

Late payments under the Prompt Payment Act accrue interest at the Treasury's Current Value of Funds Rate, published quarterly.

Progress payments on fixed-price contracts are typically based on what?

Answer: Costs incurred by the contractor to date

Progress payments on fixed-price contracts are generally based on costs the contractor has incurred performing the contract.

Which FAR clause governs payment terms for fixed-price contracts?

Answer: FAR 52.232-1

FAR 52.232-1, Payments, establishes the standard payment terms applicable to fixed-price supply and service contracts.

A contractor submits an invoice with the correct dollar amount but uses the wrong contract line item number (CLIN). This invoice is:

Answer: An improper invoice that must be returned for correction

An incorrect CLIN makes an invoice improper; all required data elements including CLINs must be accurate before the government is obligated to pay.