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Title 48 Part 732 → Subpart 732.4 → §732.406-71

Title 48 → Chapter 7 → Subchapter E → Part 732 → Subpart 732.4 → §732.406-71

Electronic Code of Federal Regulations e-CFR

Title 48 Part 732 → Subpart 732.4 → §732.406-71

e-CFR data is current as of February 24, 2020

Title 48Chapter 7Subchapter EPart 732Subpart 732.4 → §732.406-71


Title 48: Federal Acquisition Regulations System
PART 732—CONTRACT FINANCING
Subpart 732.4—Advance Payments for Non-Commercial Items


732.406-71   Applicability for use of a Letter of Credit (LOC).

An LOC must be used when:

(a) The contracting officer has determined that an advance payment is necessary and appropriate in accordance with this subpart and the requirements found in (48 CFR) FAR 32.4;

(b) USAID has, or expects to have, a continuing relationship of at least one year with the organization, and the annual amount required for advance financing will be at least $50,000; and

(c) The advance payment is approved in accordance with (48 CFR) AIDAR 732.402(e). Additionally, the advance payments made by LOC under for fee or profit contracts, must be approved by the Procurement Executive.

[79 FR 74995, Dec. 16, 2014]