ACO CORB || All Answers are Valid.
Progress payments correct answers Progress payments are finance payments made to the
contractor based on incurred cost. Progress payment request are submitted by the contractor in
WAWF on a form 1443 and are only applicable to FFP CLINs or the fixed price portion of a
contract.
Per FAR 32, the customary progress payment rate is 80% for Large Business, 85% for small
business however, there was COVID 19 class deviation that increased the rate to 90% for large
business and 95% for small businesses.
Prior to approval of progress payments - Make sure you explain
i. WAWF SF1443 form
ii. Liquidation process
iii. WAWF payment instructions (DFARS clause 252.232-7006)
Risk - Payments are made to the contractor prior to receiving any supplies or services
i. Make sure clause is in the contract (52.232-16, Progress Payment)
ii. Contact financial capability group for financial strength and check accounting systems, past
performance, experience and reliability.
iii. DCMA Form 325 - risk assessment & rating that establish frequency of the progress payment
review
iv. Request a form 1503 from the EV specialist or IS and establish a baseline
v. Input from other functional specialist, DACO/CA/IS/PT/QA/EV/PA/Engineer
, vi. Establish Progress Payment Master & update review date, dollar limitation or profit
percentages, applicable R9 & special provision codes
vii. Complete PP validation model for
Experience - T1
Liquidate
Means to decrease a payment for an accepted supply item or service under a contract for the
purpose of recouping financing payments previously paid to the contractor.
Performance Based Payments correct answers Finance payments based upon achievable specific
and measurable milestone events
Milestones can be measured by contract or on a line item basis
Fully recoverable
ACO must consider contractor's experience, performance record, reliability, financial strength,
business systems, and adequacy of controls established by the contractor for completion of the
contract before recommending se of PBP events/criteria.
Approved accounting system or request a review
Severable - Payment independent of any other event
Cumulative - payment dependent upon the accomplishment of a previous event.
Government Furnished Property - FAR part 45 correct answers Property owned or leased by the
government but furnished to the contractor for the performance of a contract.
Government property includes material, equipment, special tooling, special test equipment, and
real property.
GFP has to be in the best interest of the government and requested by the contractor.
Coordinate with Property Administrator and PCO
Business System Deficiencies
DFARS 242.7000
Clause 252.242-7005 Business system - R
Progress payments correct answers Progress payments are finance payments made to the
contractor based on incurred cost. Progress payment request are submitted by the contractor in
WAWF on a form 1443 and are only applicable to FFP CLINs or the fixed price portion of a
contract.
Per FAR 32, the customary progress payment rate is 80% for Large Business, 85% for small
business however, there was COVID 19 class deviation that increased the rate to 90% for large
business and 95% for small businesses.
Prior to approval of progress payments - Make sure you explain
i. WAWF SF1443 form
ii. Liquidation process
iii. WAWF payment instructions (DFARS clause 252.232-7006)
Risk - Payments are made to the contractor prior to receiving any supplies or services
i. Make sure clause is in the contract (52.232-16, Progress Payment)
ii. Contact financial capability group for financial strength and check accounting systems, past
performance, experience and reliability.
iii. DCMA Form 325 - risk assessment & rating that establish frequency of the progress payment
review
iv. Request a form 1503 from the EV specialist or IS and establish a baseline
v. Input from other functional specialist, DACO/CA/IS/PT/QA/EV/PA/Engineer
, vi. Establish Progress Payment Master & update review date, dollar limitation or profit
percentages, applicable R9 & special provision codes
vii. Complete PP validation model for
Experience - T1
Liquidate
Means to decrease a payment for an accepted supply item or service under a contract for the
purpose of recouping financing payments previously paid to the contractor.
Performance Based Payments correct answers Finance payments based upon achievable specific
and measurable milestone events
Milestones can be measured by contract or on a line item basis
Fully recoverable
ACO must consider contractor's experience, performance record, reliability, financial strength,
business systems, and adequacy of controls established by the contractor for completion of the
contract before recommending se of PBP events/criteria.
Approved accounting system or request a review
Severable - Payment independent of any other event
Cumulative - payment dependent upon the accomplishment of a previous event.
Government Furnished Property - FAR part 45 correct answers Property owned or leased by the
government but furnished to the contractor for the performance of a contract.
Government property includes material, equipment, special tooling, special test equipment, and
real property.
GFP has to be in the best interest of the government and requested by the contractor.
Coordinate with Property Administrator and PCO
Business System Deficiencies
DFARS 242.7000
Clause 252.242-7005 Business system - R
