Accession Number : ADA140251

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

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC FINANCIAL AND GENERAL MANAGEMENT STUDIES DIV

PDF Url : ADA140251

Report Date : 18 May 1978

Pagination or Media Count : 7

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.

Descriptors :   *Management planning and control, *Planning programming budgeting, *Government procurement, *Finance, *Accounting, Methodology, Industries, Contracts, Costs, Investments, Policies, Regulations

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Mfg & Industrial Eng & Control of Product Sys

Distribution Statement : APPROVED FOR PUBLIC RELEASE