Alternate liquidation rate far

20 Feb 2019 9.11 Alternate Liquidation Rates . (5) When a contract contains FAR 52.232-33, “Payment by Electronic Funds Transfer –. System for Award  The objective of the alternate liquidation rate method is to permit the contractor to retain the earned 

15 Jul 2013 32.503-10 Establishing alternate liquidation rates. as defined in FAR Subpart 2.1, including contract modifications for additional supplies or  (b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the items, the contracting officer shall use the clause with its Alternate I. ___ ( 20) 52.219-16, Liquidated Damages—Subcontracting Plan (Jan 1999) (15 U.S.C. XX (3) 52.222-42, Statement of Equivalent Rates for Federal Hires (May 2014)   System Parameter for DoD Contract (FAR) documents. Contract Price Multiplied By Liquidation Rate (Line 16) Alternate amount to be used $1,799,280. The objective of the alternate liquidation rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if-            (1) The contractor requests a reduction in the rate;

IAW FAR 52.232-16(c): Reduction or Suspension –the ACO may reduce or suspend Progress Payments, and/or increase the rate of liquidation when finding substantial evidence of: •Contractor failing to comply with any material requirement of contract •Performance of contract endangered by contractor’s: –Failure to make progress

SUBPART 232.5--PROGRESS PAYMENTS BASED ON COSTS (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the loss-ratio adjusted rate); or (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor Alternate rates are discussed in FAR 32.503-9, which permits the use of a rate that is lower than 80 percent. It appears that the CO cannot set a higher liquidation rate without contractor consent, but the CO might be able to set a higher liquidation rate at the contractor's request. Subpart 42.7 - Indirect Cost Rates: Subpart 42.8 - Disallowance of Costs: Subpart 42.9 - Bankruptcy: Subpart 42.10 - [Reserved] Subpart 42.11 - Production Surveillance and Reporting: Subpart 42.12 - Novation and Change-of-Name Agreements: Subpart 42.13 - Suspension of Work, Stop-Work Orders, and Government Delay of Work: Subpart 42.14 - [Reserved] (i) If the progress payment rate is 80 percent, the minimum liquidation rate should be 72.7 percent, computed as follows: (ii) If the progress payment rate is 85 percent, the minimum liquidation rate should be 77.3 percent, computed as follows: * * * * *

Enter the Federal Acquisition Regulations (FAR) liquidation rate that the system business unit associated with the contracts business unit has the Alternate 

The objective of the alternate liquidation rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if - (1) The contractor requests a reduction in the rate; If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidation rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent. 9.11 Alternate Liquidation Rates ..53 . SECTION 10: COMMERCIAL ITEM FINANCING Ensure all ACOs are warranted in accordance with Federal Acquisition Regulation (FAR) 1.603, Defense Federal Acquisition Regulation Supplement (DFARS) 201.603, and DCMA Paragraph (b)(1) of FAR 32.503-10, Establishing Alternate Liquidation Rates, is revised to remove the language pertaining to contracts subject to the limitations in FAR 32.803-7 (see above). Also, the dollar figures in the examples in paragraph (b)(3) are doubled to reflect the increase in the $1 million threshold to $2 million (see FAR 32.104 above). The alternate liquidation rate would be calculated as follows: Alternate liquidation rate = ($26,250,000 X .80) ÷ $30,000,000 = .70 The effect of this 70 percent alternate liquidation rate on the liquidation process is reflected in the calculations below. IAW FAR 52.232-16(c): Reduction or Suspension –the ACO may reduce or suspend Progress Payments, and/or increase the rate of liquidation when finding substantial evidence of: •Contractor failing to comply with any material requirement of contract •Performance of contract endangered by contractor’s: –Failure to make progress

SUBPART 232.5--PROGRESS PAYMENTS BASED ON COSTS (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the loss-ratio adjusted rate); or (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor

payment liquidation rates are authorized for small businesses. Addition. 100502. contract for services when Alternate I of the clause at FAR 52.232-25 is used. 4 Apr 2018 If Federal Acquisition Regulation (FAR) 52.213-1, Fast Pay Procedures, Signature (or electronic alternative when supported by appropriate internal controls), outstanding progress payments and the liquidation rate is 80%.

LIQUIDATING “PROGRESS PAYMENTS BASED ON COSTS” USING THE ALTERNATE LIQUIDATION RATE METHOD Introduction A fixed-price contract or subcontract for non-commercial items containing the “Progress Payments” clause at FAR 52.232-16 permits the contractor to submit a Standard Form (SF) 1443, Contractor's Request for Progress Payment, on a monthly basis to collect contract financing payments before the Government accepts deliverable products or services.

(i) If the progress payment rate is 80 percent, the minimum liquidation rate should be 72.7 percent, computed as follows: (ii) If the progress payment rate is 85 percent, the minimum liquidation rate should be 77.3 percent, computed as follows: * * * * * (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor is a small business concern. 232.503 Postaward matters. 232.503-6 Suspension or reduction of payments. The objective of the alternate liquidation rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if - (1) The contractor requests a reduction in the rate; If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidation rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent. 9.11 Alternate Liquidation Rates ..53 . SECTION 10: COMMERCIAL ITEM FINANCING Ensure all ACOs are warranted in accordance with Federal Acquisition Regulation (FAR) 1.603, Defense Federal Acquisition Regulation Supplement (DFARS) 201.603, and DCMA Paragraph (b)(1) of FAR 32.503-10, Establishing Alternate Liquidation Rates, is revised to remove the language pertaining to contracts subject to the limitations in FAR 32.803-7 (see above). Also, the dollar figures in the examples in paragraph (b)(3) are doubled to reflect the increase in the $1 million threshold to $2 million (see FAR 32.104 above). The alternate liquidation rate would be calculated as follows: Alternate liquidation rate = ($26,250,000 X .80) ÷ $30,000,000 = .70 The effect of this 70 percent alternate liquidation rate on the liquidation process is reflected in the calculations below.

Alternate I (Mar2000). If the contract is with a small business concern, change each mention of the progress payment and liquidation rates excepting paragraph (k) to the customary rate of 85 percent for small business concerns (see FAR 32.501-1). Alternate II (Apr2003). If the contract is a letter contract, add paragraphs (n) and (o). The objective of the alternate liquidation rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if - (1) The contractor requests a reduction in the rate; (4) If the liquidation rate is changed from the customary progress payment rate (see 32.503-8and 32.503-9), substitute the new rate for the rate in paragraphs (a)(1), (a)(6), and (b) of the clause. The alternate liquidation rate would be calculated as follows: Alternate liquidation rate = ($26,250,000 X .80) ÷ $30,000,000 = .70. The effect of this 70 percent alternate liquidation rate on the liquidation process is reflected in the calculations below. SUBPART 232.5--PROGRESS PAYMENTS BASED ON COSTS (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the loss-ratio adjusted rate); or (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor