Subpart 5332.1 – FINANCING FOR OTHER THAN A COMMERCIAL PURCHASE

(a)(5) Report known adverse developments affecting a contractor or subcontractor to the contract administration office, other interested Government parties, and the SCO. If there is an adverse development affecting a contractor receiving a bank loan guaranteed by the Department of the Air Force, progress payments, or advance payments, the contracting office must 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 SCO to the cognizant HCA Workflow.

(c)(2) See 5332.114 Unusual Contract Financing. .

The Director, Defense Pricing and Contracting (DPC), on a non-delegable basis, shall approve unusual contract financing arrangements as stated in FAR 32.114 and DFARS 201.402(1)(vi). The contracting officer must submit any unusual financing requests by a contractor through the SCO to SAF/AQC for review and concurrence prior to SAF/AQC forwarding request to DPC for approval. The SCO must submit a memorandum outlining the pertinent facts together with a recommendation on the action to be taken through the SAF/AQC Workflow with a courtesy copy to SAF/FMF [SP1] no later than 30 days before the needed effective date of the proposed financing arrangement. For Space Force, follow internal coordination procedures prior to submission to SAF/AQC Workflow for review and submission by SAF/AQC to DPC.