Procurement Information Circular
January 01, 1999
CORRECTION OF PIC 98-17 ERROR
PURPOSE: To correct an error in PIC 98-17, "Early Payment and Frequent Billing."
BACKGROUND: PIC 98-17 provided guidance on how to determine the cost to the Government and the value of consideration offered by a contractor/offeror in the negotiation of early payment billing arrangements where contract financing is involved.
GUIDANCE: The guidance section for Early Payment of PIC 98-17 contains an error. The first sentence of that section describes when early payment occurs. This description refers to the receipt of a proper "invoice." The term "invoice" was incorrectly used since invoice payments are not used for contract financing. The last sentence of the definition for "contract financing payment" under FAR 32.902 clearly states "Contract financing payments do not include invoice payments or payments for partial deliveries." In order to correct this error and to make the guidance consistent with the coverage at NFS 1832.906, the term "invoice" should be replaced with "request for payment."
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.
HEADQUARTERS CONTACT: Joe Le Cren, Code HK, (202) 358-0444, email: email@example.com.
R. Scott Thompson
Director, Contract Management Division