52.247-6 Financial Statement
Source: FAR 52.247-6 on acquisition.gov
Offerors for transportation-related contracts must promptly provide certified financial statements upon request or risk rejection for lack of responsibility.
Overview
FAR 52.247-6, Financial Statement, is a solicitation provision used in contracts for transportation or transportation-related services. It requires offerors to provide, upon request, a current certified financial statement and any additional operational data the Government deems necessary. This information is used by the Government to assess the offeror’s financial responsibility and capability to perform the contract. Failure to supply the requested information can result in the offeror being deemed non-responsible and their offer being rejected.
Key Rules
- Provision Inclusion
- This clause must be included in solicitations for transportation or transportation-related services as directed by FAR 47.207-1(e).
- Financial Statement Requirement
- Offerors must promptly provide a current certified financial statement and any other requested operational data when asked by the Government.
- Responsibility Determination
- The Government uses the submitted information to determine if the offeror is financially responsible and capable of contract performance.
- Consequence of Non-Compliance
- Failure to provide the requested information may result in rejection of the offer based on responsibility grounds.
Responsibilities
- Contracting Officers: Must request financial statements when necessary and evaluate them to determine responsibility.
- Contractors/Offerors: Must promptly provide certified financial statements and any additional requested data.
- Agencies: Ensure proper evaluation of financial responsibility and document decisions.
Practical Implications
- This provision ensures only financially responsible contractors are considered for transportation contracts, reducing risk of non-performance.
- Contractors should be prepared to produce up-to-date, certified financial statements quickly.
- Delays or failure to provide information can lead to disqualification, making timely compliance critical.
As prescribed in 47.207-1(e), insert the following provision in solicitations for transportation or for transportation-related services to ensure that offerors are prepared to furnish financial statements:
Financial Statement (Apr 1984)
The offeror shall, upon request, promptly furnish the Government with a current certified statement of the offeror’s financial condition and such data as the Government may request with respect to the offeror’s operations. The Government will use this information to determine the offeror’s financial responsibility and ability to perform under the contract. Failure of an offeror to comply with a request for information will subject the offer to possible rejection on responsibility grounds.
(End of clause)