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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: September 18, 2000

FROM: Barry McVay, CPCM

SUBJECT: Federal Acquisition Regulation (FAR); Financing Policies

SOURCE: Federal Register, September 18, 2000, Vol. 65, No. 181, page 56453

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed to amend the FAR to permit the use of the performance-based payments type of financing on fixed-price contracts prior to definitization, and to establish a standard time period of 30 days that contractors have to pay their vendors after the contractors have billed the government for incurred vendor costs.

EDITOR'S NOTE: This proposed rule would supplement the "Progress Payments and Related Financing Policies" final rule that was published as part of Federal Acquisition Circular (FAC) 97-16. For more on this, see the March 27, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-16, Small Business Competitiveness Demonstration Program and Progress Payments and Related Financing Policies."

DATES: Comments should be submitted on or before November 17, 2000.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVR), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405; e-mail: farcase.2000-007@gsa.gov. Cite FAR case 2000-007 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-0692.

SUPPLEMENTAL INFORMATION: On March 27, 2000, FAC 97-16 was published, and it contained a final rule that revised progress payments and related financing policies to make them easier to understand and to minimize the burdens imposed on contractors and contracting officers. This proposed rule would supplement the March 27, 2000, final rule as follows:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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