18.122
Advance payments
FAR 18.122 enables agencies to authorize advance payments under extraordinary circumstances to support national defense, but strict compliance with related regulations is required.
Overview
FAR 18.122 allows federal agencies to authorize advance payments to contractors when necessary to facilitate national defense, specifically under the authority of Public Law 85-804. This provision applies to both sealed bid and negotiated contracts and is intended to provide financial flexibility in extraordinary circumstances. The section references Subpart 50.1 for extraordinary contractual actions and FAR 32.405 for additional procedures related to advance payments. Contractors and contracting officers must ensure that such payments are properly authorized and comply with all related regulations and documentation requirements.
Key Rules
- Authorization of Advance Payments
- Agencies may approve advance payments to contractors to support national defense needs under Public Law 85-804.
- Applicability to Contract Types
- Advance payments can be made for both sealed bid and negotiated contracts, either at or after contract award.
- Reference to Related Regulations
- Actions must comply with procedures in Subpart 50.1 and FAR 32.405.
Responsibilities
- Contracting Officers: Must ensure advance payments are properly authorized, documented, and in compliance with applicable laws and regulations.
- Contractors: Must comply with any terms and conditions associated with receiving advance payments and provide necessary documentation.
- Agencies: Must oversee the authorization process and ensure payments are justified under national defense needs.
Practical Implications
- This section provides flexibility for agencies to expedite contract performance in support of national defense by allowing advance payments.
- Contractors may receive funds before work begins, but must adhere to strict compliance and documentation requirements.
- Common pitfalls include inadequate justification, missing documentation, or failure to follow referenced procedures in Subpart 50.1 and FAR 32.405.