11) The Wanabee Big Corp., a small, high-tech defense contractor, possessestechnical abilities considered essential to the Department of Defense.Wanabee manufactures several key, military-unique components for thecritical F-29 fighter jet. Unfortunately, the company’s financial condition isweak. The chief executive officer (CEO) recently contacted the governmentprocuring contracting officer (PCO) and requested advance payments on ajust-signed $18 million contract. The PCO has determined that Wanabeemeets all the statutory requirements and standards. What action should thePCO now take? [Identify the conditions for using loan guarantees, advance payments, andinterim vouchers.][Remediation Accessed :N] Recommend that the agency authorize non-commercial advance payments since Wanabee’s technical ability is considered essential to the agency. Provide commercial advance payments, but continue to closely monitor the contractor’s performance and financial condition to reduce the government’s financial risk. Inform Wanabee that the risk associated with their weak financial condition automatically makes them ineligible for any type of financing.
Instruct Wanabee to initiate paperwork to get a loan guarantee through the Federal Reserve Bank instead of advance payments. 1) Your boss has asked you to determine contractor responsibility on a contract that is going to include progress payments. In addition to FederalAcquisition Regulation (FAR) standards of contractor responsibility, the Defense Federal Acquisition Regulation Supplement (DFARS) requires that the contractor’s accounting system must meet what standard? [Identify the standards of contractor responsibility.]2) Which method of non-commercial financing is limited by Congressional authorization? [Identify the types of contract financing applicable in non-commercial acquisitions.]3) According to Dr. Ashton Carter, (then Under Secretary of AT&L) in his September 2010 Memorandum for Acquisition Professionals, what should be the basis of negotiations for all fixed price contracts that provide contract financing? [Identify the conditions for using performance-based payments and progress payments.]
4) You award a $2,000,000 contract to a small disadvantaged business. The contract includes a progress payment rate of 90%. One month after award, the contractor submits his first progress payment request with total incurred costs to-date of $250,000. How much is the contractor eligible to receive?
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