Use of Letter of Credit Procedures for Paying Department of Defense Contracts Authorized to be Financed by Advances and Progress Payments.

Abstract

The Department of Defense could advantageously use letter of credit procedures for paying contracts authorized to be financed by advances and progress payments. Such payments are currently made by Treasury check. In a meeting with you on January 27, 1977, it was specifically requested that we determine if the checks paid letter of credit method would allow a more precise identification of the level of Government and contractor investment in working capital. The results of our review are summarized below. Our findings include observations about various payment techniques and analysis of several major issues which are related to operating capital. Advances are dealt with separately as they are treated somewhat differently from progress payments. Since regulations provide that Defense reimburse contractors operating cost contracts at 100 percent, these contracts are not discussed in this report.

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Document Details

Document Type
Technical Report
Publication Date
May 18, 1978
Accession Number
ADA140251

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Accounting
  • Business Administration
  • Capital Investments
  • Contractors
  • Contracts
  • Department Of Defense
  • Finance
  • Fixed Price Contracts
  • Governments
  • Investments
  • Money
  • Payment
  • Procurement
  • Regulations
  • Small Business
  • Standards

Readers

  • Defense Financial Management and Audit.
  • Systems Analysis and Design