About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-202254 1 (1981-05-19)

handle is hein.gao/gaobabjcg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 OFFICE OF GENERAL COUNSEL May 19, 1981 B-202254 Mr. James T. Brannan Director Defense Acquisition Regulatory Council Office of the Under Secretary of Defense for Research and Engineering Dear Mr. Brannan: By letter of February 17, 1981, you requested our ments on proposed modifications to per-ag-r-a-h-E-5-2-1 efr-the Defense Contract Financing RegulationsJ(Defense Acquisition Regulation Appendix E),regarding milestone billing arrangements. -3 LThe purpose of a milestone billing arrangement is to alleviate inordinately high contractor financing that would otherwise result by limiting payments to custom- ary progress payments in the performance of a defense contract with exceptionally long lead time between ini- tiation of contract performance and commencement of deliveries of contract end items. The stated objective of the proposed changes is to assure greater consistency in the application of such arrangements to individual contracts.:- CWe believe that the proposed modifications represent, for the most part, an improvement over the existing regul- ations. However, in our opinion, the proposed rules do not provide adequate guidance on the important concept of contractor investment.D The stated policy of the Depart- ment of Defense is that contractors should maintain an appropriate level of investment in their contract work- in-process inventories at all times. In this regard, authorities responsible for approving milestone billing arrangements will evaluate each request on its individual merits with this DOD policy in mind. Specifically, the proposed revision provides that:

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most