MP5332.1 Non-Commercial Item Purchase Financing

(1)  Since unusual contract financing arrangements may significantly impact the pricing of a contract, the contracting officer shall submit any unusual financing requests by a contractor to the MAJCOM Contracting Staff for consultation.

(2)  If the MAJCOM Contracting Staff determines an approval is required by higher authority, it shall submit a memorandum outlining the pertinent facts together with a recommendation on the action to be taken through SAF/AQCK to SAF/FMPS no later than 30 days before the needed effective date of the proposed financing arrangement.

(3)  Since the financial health of a firm significantly impacts the ability of the contractor to perform, the contracting officer shall promptly report known adverse developments affecting a contractor or subcontractor to the contract administration office, other interested Government parties, and their MAJCOM Contracting Staff.

(4)  If there is an adverse development affecting a contractor receiving a bank loan guaranteed by the Air Force, progress payments, or advance payments, the contracting office shall report the adverse development, its expected impact upon continued satisfactory performance under the contract, remedial actions taken to date (if any), and any recommendations for further action through the MAJCOM Contracting Staff to SAF/AQCK.