The alternate liquidation rate would be calculated as follows: Alternate liquidation rate = ($26,250,000 X .80) ÷ $30,000,000 = .70. The effect of this 70 percent alternate liquidation rate on the liquidation process is reflected in the calculations below. SUBPART 232.5--PROGRESS PAYMENTS BASED ON COSTS (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the loss-ratio adjusted rate); or (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor Alternate rates are discussed in FAR 32.503-9, which permits the use of a rate that is lower than 80 percent. It appears that the CO cannot set a higher liquidation rate without contractor consent, but the CO might be able to set a higher liquidation rate at the contractor's request. Subpart 42.7 - Indirect Cost Rates: Subpart 42.8 - Disallowance of Costs: Subpart 42.9 - Bankruptcy: Subpart 42.10 - [Reserved] Subpart 42.11 - Production Surveillance and Reporting: Subpart 42.12 - Novation and Change-of-Name Agreements: Subpart 42.13 - Suspension of Work, Stop-Work Orders, and Government Delay of Work: Subpart 42.14 - [Reserved]
The objective of the alternate liquidation rate method is to permit the contractor to retain the earned 14 Oct 2014 232.501-1 Customary progress payment rates. (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the payment liquidation rates are authorized for small businesses. Addition. 100502. contract for services when Alternate I of the clause at FAR 52.232-25 is used.
(i) If the progress payment rate is 80 percent, the minimum liquidation rate should be 72.7 percent, computed as follows: (ii) If the progress payment rate is 85 percent, the minimum liquidation rate should be 77.3 percent, computed as follows: * * * * * (b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor is a small business concern. 232.503 Postaward matters. 232.503-6 Suspension or reduction of payments. The objective of the alternate liquidation rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items in the liquidation process. The contracting officer may reduce the liquidation rate if - (1) The contractor requests a reduction in the rate; If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidation rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent. 9.11 Alternate Liquidation Rates ..53 . SECTION 10: COMMERCIAL ITEM FINANCING Ensure all ACOs are warranted in accordance with Federal Acquisition Regulation (FAR) 1.603, Defense Federal Acquisition Regulation Supplement (DFARS) 201.603, and DCMA Paragraph (b)(1) of FAR 32.503-10, Establishing Alternate Liquidation Rates, is revised to remove the language pertaining to contracts subject to the limitations in FAR 32.803-7 (see above). Also, the dollar figures in the examples in paragraph (b)(3) are doubled to reflect the increase in the $1 million threshold to $2 million (see FAR 32.104 above). The alternate liquidation rate would be calculated as follows: Alternate liquidation rate = ($26,250,000 X .80) ÷ $30,000,000 = .70 The effect of this 70 percent alternate liquidation rate on the liquidation process is reflected in the calculations below.
The following terms shall have the meaning set forth in FAR 2.101: “Agency head ” change from the ordinary liquidation rate to an alternate rate when deemed. Enter the Federal Acquisition Regulations (FAR) liquidation rate that the system business unit associated with the contracts business unit has the Alternate I.67FAR 52.222-42, Statement of Equivalent Rates for Federal Hires (May 2014) the ordinary liquidation rate to an alternate rate when deemed appropriate for auditor may need to pursue one or more of these alternative data sources. c. liquidation rate (FAR 32.503-9) to permit the contractor to retain the earned profit. 13 Feb 2019 For items having a limited shelf-life, substitute Alternate I when officer determines that liquidated damages are appropriate (see FAR 11.501(a)). the Contractor shall be liable for liquidated damages at the specified rate for 15 Jul 2013 32.503-10 Establishing alternate liquidation rates. as defined in FAR Subpart 2.1, including contract modifications for additional supplies or
Customary progress payments are those made under the general guidance using the customary progress payment rate (80%), the cost base, and frequency of payment established in the Progress Payments clause, and either the ordinary liquidation method or the alternate method as provided in subsections FAR 32.503-8 and FAR 32.503-9. (FARS 32.102(a), 52.232-12(d)) How does the ACO ensure that liquidations are planned for and monitored? The ACO must assure that a proper liquidation rate is used. FAR 32.503-8 through FAR 32.503-10 outlines the conditions for using ordinary and alternate liquidation rates and explains how to compute them. What do you need to do in MOCAS?