Contract Financing

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“Ding ding.” – Apollo Creed,
Rocky III

September 30. All (most?) federal years end the same way, at least on paper—like a prizefight, with the clock ticking down; an agitated, uncertain crowd; a lot of money on the table; and a ref capable of stopping the match at any moment. This year will be at once both no different and a completely different beast. With ever-recent uncertainty surrounding appropriations, continuing-resolution (CR) risk, evolving Federal Acquisition Regulation (FAR) language, the tightening screws of cyber attestations, industry supply-chain and acquisition changes, and grant closeouts that always take longer than you’d think, September is not a month for contractor improvisation. It’s a month when a dedicated corner team, a game plan, and crisp execution all are paramount.Continue Reading And in This Corner … the Sweet Science of Federal Contracting’s Year-End

Contracting with the Department of Defense (DoD) can provide healthy opportunities for businesses of all sizes.  That said, it is no secret that contractors without the cash resources to finance their performance while awaiting payment from the Government may find themselves swallowed whole by their contractual obligations. Many defense contracts are long-term endeavors; consequently, a contractor’s sustainability and profitability can be impacted by the sapping of available manpower while also requiring significant capital investment to manage material, labor, overhead, and other expenses incurred when performing a contract. In many cases, the upfront financial investment required serves as a barrier to entry into the government marketplace for nontraditional defense contractors. However, the DoD has recently unearthed and reanimated one of the more impressive dinosaurs buried in the Federal Acquisition Regulation. Welcome to the world of performance-based payments (PBPs).
Continue Reading The Evolution of Contract Financing: Resurrecting Performance-Based Payments Under Fixed-Price Contracts