32.410
Findings, determination, and authorization
FAR 32.410 requires a detailed, tailored written justification and authorization for each advance payment, ensuring government interests are protected and statutory requirements are met.
Overview
FAR 32.410 establishes the requirements for preparing written findings, determinations, and authorizations (FD&A) when approving advance payments to contractors for non-commercial acquisitions. This section provides a detailed template and guidance for documenting the justification, necessity, and terms of advance payments, ensuring that each case is supported by specific facts and complies with statutory and regulatory requirements.
Key Rules
- Written Findings Required
- Every determination for advance payments must be supported by written findings that detail the contract circumstances and justify the need for advance payments.
- Standardized FD&A Format
- The regulation provides a sample format for the FD&A, including required and optional paragraphs to be tailored to the contract's specifics.
- Security and Accountability
- The FD&A must address security for the Government, including special accounts, paramount liens, and, if applicable, advance payment bonds or financial management controls.
- Interest and Authority
- The determination must specify whether interest applies and cite the statutory authority for the advance payment.
- Customization and Documentation
- Each FD&A must be individually prepared, using required paragraphs and customizing optional ones as appropriate to the contract type and circumstances.
Responsibilities
- Contracting Officers: Must prepare, document, and sign the FD&A, ensuring all required elements are included and tailored to the contract.
- Contractors: Must provide information to support the findings and comply with terms set forth in the FD&A and advance payment clause.
- Agencies: Must review and approve FD&A documentation, ensuring compliance with statutory and regulatory requirements.
Practical Implications
- This section ensures that advance payments are only authorized when justified and properly secured, protecting government interests.
- It provides a clear process and documentation standard, reducing risk of improper payments.
- Common pitfalls include incomplete findings, failure to address security, or improper use of optional paragraphs.