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I saw this article on WIFCON's front page and found it confusing.  I am curious what others' thoughts are on it.  Pay a company $158,000 on the day of award?  For what?  I thought services or supplies should only be paid when the government receives the service/supply?  I must be missing something but I'm not sure what I overlooked.

Thoughts?

 

https://www.af.mil/News/Article-Display/Article/1779609/inaugural-air-force-pitch-day-new-contracts-new-partners/

 

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The news release is not that clear but it seems the AF is concentrating on SBIR Phase I contracts.  Also, although the release does not say so, the payments probably are advance payments, a form of contract financing.

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The government-wide purchase card (GPC) is routinely used to pay for services and supplies before they are received,  inspected, or accepted. In this case, the first payments are for the pitch and associated data.

Watch the video here. (GPC discussion starts at 10:00 and answers the question around 16:00)
 

SmartSelect_20190311-194811_Internet.jpg

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The GPC is primarily used for micro-purchases, although some agencies are using it as the payment method for larger purchase orders or contracts.  This is an unusual method and it will be interesting to see how well it works down the road.  Getting that large a sum of money to pitch something (or at least that's what it looks like) could be viewed as innovative, or wasteful...  depending on the actual results

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