NAVY ACQUISITION PROCEDURES SUPPLEMENT
CONTRACT FINANCING
SUBPART 5232.4-ADVANCE PAYMENTS
(e) All delegations of authority with respect to advance payments under 10 U.S.C. 2307 conferred upon the Secretary of the Navy have been delegated to the ASN(FM&C). This authority has been redelegated to the Director, Office of Financial Operations, OASN(FM&C), who will make the necessary determinations and findings and approve contract terms concerning advance payments. Requests for advance payments shall be submitted via ABM.
SUBPART 5232.5-PROGRESS PAYMENTS BASED ON COSTS
5232.501-2 (DFARS 232.501-2) Unusual progress payments.
(a) Forward requests for unusual progress payments via ABM.
The contracting officer is the responsible official for determining the amount of contract debt owed the Government and for demanding payment. The Assistant Secretary of the Navy (Financial Management & Comptroller) is the responsible official for deciding whether to defer collecting contract debts.
5232.610 Demand for payment of contract debt
(b)(3) All requests for deferment shall be submitted to the contracting officer for review in accordance with FAR 32.613. The contracting officer shall forward the request, with a recommendation, to the Assistant Secretary of the Navy (Financial Management & Comptroller) via ABM.
5232.613 Deferment of collection.
(c) Information should be submitted with all requests, whether or not an appeal is pending or a Dispute action filed. In addition, include the following information:
(6) If applicable, the final decision, the appeal, the status of the appeal, and the name of the Navy lead trial attorney.
(7) The appropriation account(s) that will be credited with the repayment or debited with the liability if the appeal is successful.
(8) Points of contact at the cognizant paying and contract administration offices.
(9) Any small business concern representation.
5232.690 DoN claims against a contractor.
The review and approval requirements of 5233.9001 apply to the settlement of DoN claims against contractors.
SUBPART 5232.7-CONTRACT FUNDING
5232.790 Establishment of obligations.
For documents requiring two signatures to be valid obligations, both signatures must be affixed prior to expiration of the appropriation or fund involved. Signatures to such obligating documents will be dated the day that they are affixed to the document. The date of the last required signature determines the date of the obligation for recording purposes.
5232.791 Obligation of transportation cost in purchase documents.
When the supplier is to be reimbursed for transportation costs, the contracting officer should include an estimate of such costs in the contract under the appropriation data, as follows: "For obligation purposes only, the transportation costs chargeable to the funds indicated above are estimated to be $ ." These estimated transportation costs will not be included in the total posted in the "Amount" blank on the face of the purchase document; however, the words "PLUS TRANS" will be inserted within the "Amount" blank to alert interested personnel to this additional obligation.
5232.792 Accounting and appropriation data.
(a) Contracts, orders, and change orders or amendments that revise the accounting data for any item or change the total amount of a contract should indicate the accounting code numbers under which payments on the contract or order are to be made. The accounting and appropriation data represents the accounting classification reference number (ACRN).
5232.793 Responsibility for accounting classification and payments data.
(a) The contracting office is responsible for ensuring that all contracts and modifications are written in such a manner that all quantities, items, tasks, services, etc., required by the contract or modification can be related to specific accounting data cited in the contract or modification.
(b) Shipping instructions issued under a contract or modification should identify the Contract Line Item Number (CLIN), Subline Item Number (SLIN) and Accounting Classification Reference Number (ACRN), which will permit identification of the accounting classification to which each quantity of each item, service, or task, is properly chargeable. To facilitate proper payment, contracts should require that the contractor cite the CLIN, SLIN, and ACRN, reflected in the shipping instructions, on applicable invoices.
"Invoice" as used in this subpart, includes vouchers and means a contractor request for payment including partial payments and final payments under fixed price contracts; or interim and final payments on cost type contracts. The term does not include requests for progress payments.
For Prompt Payment Act purposes, every contract, including actions accomplished by simplified acquisition procedures, should indicate on its face whether the payments under it are:
(a) Subject to the 7 calendar day constructive acceptance period;
(b) Subject to acceptance terms other than (a) above; or
(c) Not subject to the Prompt Payment Act.
If a Technical Representative or Contracting Officer's Representative has been assigned in the contract, the contracting officer should designate that individual to receive an information copy of the invoice.
(a) Use the clause at 5252.232-9000, SUBMISSION OF INVOICES (FIXED PRICED), in fixed price (except fixed price incentive) type solicitations/contracts, or basic ordering agreements requiring fixed price orders, except in construction or architect-engineer contracts as provided in paragraphs (d) and (e) below. Use Alternate I for fixed price level of effort contracts to designate the Government representative with authority to approve hours actually expended. The HCA or designee not lower than one level above the contracting officer is authorized to approve deletion of the requirements in clause paragraph (d) for subline item (SLIN) and accounting classification reference number (ACRN) data on each invoice.
(b) Use the clause at 5252.232-9001, SUBMISSION OF INVOICES (COST-REIMBURSEMENT, TIME-AND-MATERIALS, LABOR-HOUR, OR FIXED PRICE INCENTIVE), for cost reimbursement, time-and-materials, labor-hour, or fixed price incentive solicitations/contracts, except as provided in paragraphs (d) and (e) below. When use of foreign vendors/contractors is anticipated, use this clause with its Alternate I. The HCA or designee not lower than one level above the contracting officer is authorized to approve deletion of the invoice requirements in clause paragraphs (d) and (h) relating to subline (SLIN) and accounting classification reference number (ACRN) data. Use the clause with its Alternate II when the contract auditor has authorized the contractor to submit interim vouchers directly to paying offices.
(c) Use the clause at 5252.232-9002, INVOICES FOR CLASSIFIED CONTRACTS, in classified solicitations/contracts for supplies/services.
(d) Use the clause at 5252.232-9003, SUBMISSION OF INVOICES IN CONTRACTS FOR LEASE, MAINTENANCE, RENTAL AND/OR SUPPORT SERVICES, when applicable in contracts for lease, maintenance, rental, and/or support services of Information Technology (IT) or other type of equipment. Variation of this clause is authorized to accommodate the unique needs of the individual acquisition, provided such variation does not impose significant additional cost or administrative burdens on the offeror/contractor.
(e) The Contracting Officer may use approved component clauses, when applicable, for:
(i) Military Sealift Command acquisitions which require unique invoicing/payment arrangements such as container leasing, rental, operation or charter of vessels; carriage of goods; or
(ii) Naval Sea Systems Command acquisitions of craft and/or shipbuilding.