2024: The FAR, Federal Acquisition Regulations, Part 32

Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos

1. 2024 Webinar Series The FAR: Federal Acquisition Regulations Understand the rules of the federal contracting game - and play to win ! J Schaus & Associates, WASHINGTON DC – [email protected]

2. 2024 Webinar Series THE FAR ABOUT THE SERIES : We’ll cover each PART of THE FAR Typically held Wednesdays and Fridays, 12pm Complimentary Recorded Video Posted on YouTube https://www.youtube.com/@jenniferschaus/videos PPT Posted on SlideShare.net Sponsor/Advertising Options Available J Schaus & Associates, WASHINGTON DC – [email protected]

3. 2024 Webinar Series THE FAR J Schaus & Associates, WASHINGTON DC – [email protected]

4. 2024 Webinar Series THE FAR J Schaus & Associates, WASHINGTON DC – [email protected]

5. 2024 Webinar Series THE FAR ABOUT US: Services for FED GOV CONTRACTORS: Washington DC based; Professional services for established gov cons; Market Analysis to GSA Schedules; Contract Administration, etc. J Schaus & Associates, WASHINGTON DC – [email protected]

6. 2024 Webinar Series THE FAR ABOUT US: Services for those selling TO FED CONTRACTORS: Newsletter Advertising; Webinar Advertising; Social Media Advertising; Event Sponsorship; Ask for our MEDIA KIT! J Schaus & Associates, WASHINGTON DC – [email protected]

7. Marketing TO Federal Contractors? BOGO Digital Advertising Offer 30,000+ Newsletter Subscribers 90% Federal Contractors 23% - 32% Open Rates (12 Mo Ave) 4% - 12% Click Rates (12 Mo Ave) -------------------------------- [email protected] for details

8. WEDNESDAY 05/08 US SENATE – & - HOUSE OF REPRESENTATIVES Scheduled Hearings

9. TUESDAY, MAY 21 st 9-11am “GSA Schedules: The What, Why, How To - And Fine Print!” REGISTER: https://events.teams.microsoft.com/event/01d60a75-d77d-44d0-a501-9f74ff47c4ef@253e7787-672d-4071-9290-fc3db5246db7 TUESDAY, JUNE 4 th 9-11am “Federal Contractors Basic Marketing Guide” REGISTER: https://events.teams.microsoft.com/event/70f1a706-f1b3-46e1-9f88-d769e16075f3@253e7787-672d-4071-9290-fc3db5246db7 LIVE WEB BASED TRAINING

10. VA APEX ACCELERATOR - 2024 TRAINING EVENTS THURSDAY, JUNE 13 th 11.30am-1.30pm GSA Schedules: Requirements, Proposal Prep and – What’s Next REGISTER: https://virginiaptac.ecenterdirect.com/events/4448 TUESDAY, AUGUST 6 th 1pm-3pm Marketing 101 For Federal Contractors: Attract The Primes, Attract The Government REGISTER: https://virginiaptac.ecenterdirect.com/events/4452 TUESDAY, NOVEMBER 12 th 9.30am-11.30am GSA Schedules: Requirements, Proposal Prep and – What’s Next REGISTER: https://virginiaptac.ecenterdirect.com/events/4456

11. Our Sponsored Content Webinars Palmetier Law – Part 1 of 2 - Thursday JUNE 20 SBIR / STTR Unleashing Small Business Innovations: A Path To Growth & Prosperity https://attendee.gotowebinar.com/register/819675359822707801 Palmetier Law – Part 2 of 2 Thursday JUNE 27 SBIR / STTR Unleashing Small Business Innovations: A Path To Growth & Prosperity https://attendee.gotowebinar.com/register/4351522212519190620

12. 2024 Webinar Series - THE FAR THANK YOU TO OUR WEBINAR SPONSORS J Schaus & Associates, WASHINGTON DC – [email protected]

13. The FAR – Federal Acquisition Regulations - WEBINAR SERIES 2024 JSchaus & Associates – Washington DC – [email protected]

14. Full training calendar: virginiaptac.org & useful links Register for free counseling: https://virginiaptac.org/services/counseling/ Your “one stop” shop for Government Contracting assistance Reach us at [email protected] or 703-277-7750 This APEX Accelerator is funded in part through a cooperative agreement with the Department of Defense. Next Steps?

15. 2024 Webinar Series THE FAR THE FAR – PART 32 J Schaus & Associates, WASHINGTON DC – [email protected]

16. 2024 Webinar Series THE FAR FAR PART #32: Contract Financing SPEAKERS: Abby Bello Salinas FIRM: Peckar & Abramson EMAIL: [email protected] J Schaus & Associates, WASHINGTON DC – [email protected]

17. 2024 Webinar Series THE FAR FAR PART #32: Contract Financing SPEAKERS: Steven Weber FIRM: Peckar & Abramson EMAIL: [email protected] J Schaus & Associates, WASHINGTON DC – [email protected]

18. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] The “Responsible Contractor” FAR 9.104-1: To be determined responsible, a prospective contractor must (a) Have adequate financial resources to perform the contract, or the ability to obtain them;[…] FAR 9.104-3: The CO shall require acceptable evidence of the prospective contractor’s ability to obtain resources, [which] normally consists of a commitment or explicit arrangement, that will be in existence at the time of contract award, to rent, purchase, or otherwise acquire the needed facilities, equipment, other resources, or personnel.

19. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Scope of Part 32 [32.000] Project Payments – Methods and Processes Loan Guarantees & Advance Payments Debts to the Government Contract Funding Private Financing NOT for the Acquisition of Commercial Products and Commercial Services ( see FAR Part 12)

20. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Debts to the Government Step 1: Government determination that debt is due, including amount owed Step 2: Contracting Officer will issue demand for payment. Step 3: Contractor has 30 days to pay debt; after that, interest will begin to accrue.

21. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Debts to the Government – Other Considerations Agency can offset the debt against payments otherwise due to the contractor Generally will occur if contractor fails to make full payment w/in 30 days of due date Debt may be subject to administrative charges Contractor may submit a request for installment payments or deferment if immediate payment is not practicable or if the amount is disputed Debts delinquent over 180 days are transferred from the Agency to the Department of the Treasury for collection

22. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] The Contracting Officer will issue a final decision on the debt if… Parties are unable to reach agreement on the existence or amount of the debt in a timely manner; Contractor fails to liquidate a debt previously demanded by the contracting officer within the timeline specified in the demand payment; or The contractor requests a deferment of collection.

23. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Contract Financing Payments [32.104] FAR 42.001: defined as authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services Includes: Advance payments Performance-based payments Commercial advance and interim payments Progress payments under FAR 52.232-16 Progress payments based on a percentage or stage of completion, NOT made under the fixed-price payment clauses (FAR 52.232-5 and 52.232-10) Interim payments under cost-reimbursement contracts, EXCEPT where FAR 52.232-25 Alt I is used

24. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Contract Financing Payments Do NOT include: Invoice payments Payments for partial deliveries that have been accepted Final cost or fee payments where amounts have been settled All payments made under the fixed price payment clauses (FAR 52.232-5 and 52.232-10) Interim payments under cost-reimbursement contracts where FAR 52.232-25 Alt I is used Payments for partial deliveries Lease and rental payments WILL NOT be provided for purchases made under the authority of Part 13 (Simplified Acquisition Procedures) – contracts for commercial products and services exceeding SAT, but not exceeding $7.5 million

25. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Contract Financing Considerations [32.005] Bid or negotiated price will be LOWER than non-financed contracts Contract terms and conditions will be more beneficial to the Government No separate consideration for contract financing, but new consideration is required for changes or additions to contract financing after award No specific charges (i.e., interest) should be charged for the contract financing

26. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Considerations for Contract Performance in Foreign Countries Enforceability of Government financing is dependent on local law and procedure May have different security provision requirements than standard

27. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Accelerated Payments [32.009] FAR 52.232-40 Not available on DoD projects Available for small business contractors and primes with small business subcontractors 15 days after invoice Separate and distinct from the Prompt Payment Act (not subject to PPA late payment interest provisions)

28. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Contract Funding Limitations FAR 52.232-20, Limitation of Cost FAR 52.232-22, Limitation of Funds FAR 32.704(c): Government Personnel encouraging a Contractor to continue work in the absence of funds may be subject to civil or criminal penalties for violations of 31 U.S.C. 1341.

29. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Assignment of Claims [32.802] Assignments to financial institutions are valid if… The aggregate contract payments exceed $1,000; The assignment is made to a financial institution (e.g., bank, trust company, federal lending agencies); Contract does not prohibit assignment; Assignment covers all unpaid amounts payable under the contract, unless otherwise permitted in the contract; Assignment is made to only one party, unless otherwise permitted in the contract; Assignment is not subject to further assignment, unless otherwise permitted in the contract; Assignee sends written notice of assignment, including a copy of the assignment instrument, to; the CO or agency head, the surety, and the disbursing officer.

30. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Assignment of Claims Does not alter the relationship between the government and the contractor; Assignee does not become a party to the Contract. Produce Factors Corp. v. United States, 467 F.2d 1343 (197w); Thomas Funding Corp. v. United States, 15 Ct. Cl. 495 (1988). Assignee is not in privity; not a CDA “contractor” and is not given right to assert claims under CDA. HSH Nordbank AG v. Unites States, 121 Fed. Cl. 332 (2015); Insurance Co. of the West v. United States, 100 Fed. Cl. 58 (2011).

31. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Assignment: Government’s Right to Set Off Immunity: Government may not recover money paid to an assignee under a valid assignment when the contractor who assigned the payment owes money to the government. [32.804(a)] If the contract includes a no-setoff commitment, the government cannot reduce or set off the payment to the assignee due to contractor liability arising from the contract or from… Renegotiation under statute or contract clause Fines Penalties Taxes or social security contributions

32. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Prompt Payment [32.9] 1982 Prompt Payment Act (PPA) Generally, payments to Prime will be due 30 days after receipt of a “proper invoice” Must include all elements listed in FAR 52.232-27(a)(2) For fixed-price construction progress payments based on stage of completion, invoices must substantiate the amounts requested and include the certification in FAR 52.232-5 Defective invoices are returned w/in 7 days Exception: construction prompt payment is 14 days [FAR 52.232-27]

33. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Prompt Payment Interest Will not accrue if Government failure to make timely payment is due to a dispute between the Government and Contractor as to an amount claimed or compliance with contract requirements. Construction contractors will be liable for PPA interest if they are paid for non-conforming work, running from the date payment was received to the date the contractor notifies the agency that the deficiency is corrected or reduces the amount of a subsequent pay app by an amount equal to the unearned amount.

34. 2024 Webinar Series - THE FAR J Schaus & Associates, WASHINGTON DC – [email protected] Retainage on Construction Contracts [32.103] FAR 32.103: When satisfactory progress has not been achieved by a contractor during any period for which a progress payment is to be made, a percentage of the progress payment may be retained. Max 10% of contract amount May be adjusted as contract approaches completion if: Better than expected performance Increased ability to rely on alternative safeguards Etc. Must be paid promptly after completion of all contract requirements

35. 2024 Webinar Series - THE FAR THANK YOU FOR ATTENDING! FAR PART #32: Contract Financing SPEAKERS: Steven Weber & Abby Bello Salinas FIRM: Peckar & Abramson EMAIL: [email protected] & [email protected] J Schaus & Associates, WASHINGTON DC – [email protected]

36. 2024 Webinar Series THE FAR Please subscribe to our YouTube Channel for Gov Con Content Uploads including THESE WEBINARS! https://www.youtube.com/@jenniferschaus/videos J Schaus & Associates, WASHINGTON DC – [email protected]

37. 2024 Webinar Series The FAR: Federal Acquisition Regulations THANK YOU FOR JOINING US! J Schaus & Associates, WASHINGTON DC – [email protected]