PART 5332 -    Contract Financing

Table  of Contents

  [2019  Edition] 

 INTERIM  CHANGE: See CPM  19-C-11 . 

SUBPART 5332.1 —  NON-COMMERCIAL ITEM PURCHASE FINANCING

5332.104 Providing  Contract Financing

(a)(5)  Report known adverse developments affecting a contractor or  subcontractor to the contract administration office, other interested  Government parties, and the SCO. 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 SCO to SAF/AQC . 

(c)(2)  The contracting officer must submit any unusual financing requests  by a contractor to the SCO contracting staff for consultation. If  the SCO determines unusual financing is required, the SCO must submit  a memorandum outlining the pertinent facts together with a  recommendation on the action to be taken through SAF/AQC  to SAF/FMF  no later than 30 days before the needed effective date of the  proposed financing arrangement.

SUBPART 5332.2 -  COMMERCIAL ITEM PURCHASE FINANCING

5332.202-1 Policy

(b) Authorization. The contracting officer must submit all  commercial interim payment requests and commercial advance payment  requests through the SCO to SAF/AQC  for forwarding to SAF/FMF  for review and approval. The request must include a staff  summary sheet showing the appropriate level of approval with the  following attachments: D&F, J&A (if applicable),  background paper such as a Milestone Payment Plan that outlines the  reason(s) for the request, and the proposed payment schedule. When  SAF/FMF has determined the documentation is adequate, they will  notify the contracting officer via email. 

(d) Unusual contract financing. See MP5301.601(a)(i).

SUBPART 5332.4 —  ADVANCE PAYMENTS FOR NON-COMMERCIAL ITEMS

5332.402 General

(e)(2)  The contracting officer must submit each advance payment request  through the SCO to SAF/AQC  for submission to SAF/FMF  for review and approval. See MP5332.470  for processing advance payment requests.

(c)(1)(iii) INTERIM CHANGE: See CPM  19-C-11.

SUBPART 5332.5 —  PROGRESS PAYMENTS BASED ON COSTS

5332.501-2 Unusual  Progress Payments

(a)(3)  The contracting officer must submit contractor requests for unusual  progress payments through the SCO to SAF/AQC  with a recommendation to approve or disapprove the request. SAF/AQC  will forward all requests for unusual progress payments, whether  recommended for approval or disapproval, to SAF/FMF  with all pertinent data supporting the recommended action for  approval and submission to OUSD(A&S)/DPC. 

5332.501-3 Contract  Price

(a)  When the estimated contract costs increase such that the estimate of  the unusual progress payments increase $20 million or more over the  approved unusual progress payment estimate, the contracting officer  must notify SAF/FMF  through their SCO, with a courtesy copy to SAF/AQC.

  SUBPART 5332.6 — CONTRACT DEBTS

5332.604 Demand for  Payment

(b)  Payment information for the demand for payment letter can be found  at:

https://www.dfas.mil/contractorsvendors/governmentremittance/returnfunds.html

(e)  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.

5332.607 Installment  Payments and Deferment of Collection

(a)  When a request for deferment of a contract debt is received from a  contractor, the contracting officer must forward the request for  deferment to the SCO. The SCO must submit, on a priority basis, an  evaluation of the contractor s request with the necessary reporting  information and recommendation through SAF/AQC  to SAF/FMF.

  SUBPART 5332.7 — CONTRACT FUNDING

5332.703-2 Contracts  Conditioned Upon Availability of Funds

(a) Fiscal year contracts. See MP5332.7  on contract funding. See DFARS 204.7103 for guidance on considering  severability when forming contracts and determining contract funding.

See  AFMC PGI 5332.703.

See  SMC PGI 5332.703.

See  SMC PGI 5332.703-2-90.

SUBPART 5332.9 —PROMPT  PAYMENT

5332.901  Applicability

(1)(i)(C)(ii) See MP5301.601(a)(i).

5332.906 Making  Payments

(a) INTERIM  CHANGE: See CPM  19-C-11.

SUBPART 5332.11  —ELECTRONIC FUNDS TRANSFER

5332.1106 EFT  Mechanisms

(b) INTERIM  CHANGE: See CPM  19-C-11.