By Quentin W. Fleming
Covers the topic of growth funds in response to bills incurred, as required through the Federal Acquisition rules, some distance sub-part 32.5. The publication recommends protecting a linkage among all development funds and the supplier's actual functionality for you to reduce dangers.
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Additional info for A Probus Guide to Subcontract Project Management and Control: Progress Payments
Earl Neuman, HQ DCAA 274-7775. Chapter 3 Post-Award Management Once awarded, it is the buyer's responsibility to administer the supplier's progress payments throughout the life of the subcontract. The buyer must determine whether or not there is satisfactory physical work being accomplished by the supplier in order to justify the initial and each subsequent progress payment. A buyer will normally require technical assistance from other functions in order to make such determinations. For example, routine program status reviews, on site visits by local fieldrepresentatives, visits by quality assurance and other personnel, and buyer visits themselves, all contribute to the evaluation process.
Similarly, there are a number of issues relating specifically to the subject of progress payments which can only be properly addressed prior to the issuance of the subcontract document. Many of these matters are also critical to the formation of a sound contract in which the best interests of both parties are protected, particularly those of the prime contractor. The Solicitation One of the issues facing a buyer about to award a new subcontract is which provisions of the prime contract will be flowed downward to the supplier.
Many of these matters are also critical to the formation of a sound contract in which the best interests of both parties are protected, particularly those of the prime contractor. The Solicitation One of the issues facing a buyer about to award a new subcontract is which provisions of the prime contract will be flowed downward to the supplier. With the subject of progress payment flow-down, some discretionary latitude is available to the buyer. If the resulting subcontract award will go to a small 18 Chapter 2 or to a small disadvantaged supplier, then the buyer must provide progress payments to any qualified subcontractor in that category in order to comply with the language of the Federal Acquisition Regulation (FAR).