Installment payments

Armored vehicles? What kind of armored vehicles?

Personnel Carriers

On GSA schedule. Wow!

a few thoughts...

• You don't want to use the term "progress payments" -- installment payments are not progress payments -- both progress payments and installment payments are methods of financing, but they are different.

• You need to read FAR 32.202-1 thoroughly. You also need to read the clause thoroughly.

• Did the contractor offer consideration? Surely installment payments would be substantially more advantageous to the contractor than its normal method of financing. Even if the contractor did offer consideration, maybe you should negotiate more consideration.

• Are installment payments customary in the commercial armored vehicle business? I know they are for boats and yachts, but I don't know about armored vehicles.

• Should you cancel your order and re-solicit, and include the installment payments clause in the new solicitation? You will probably get better prices from all schedule contractor offerors.

Anyway, if I were you, my first answer to the contractor would be no. The contractor must provide the armored vehicles on time with payment upon delivery, as proposed in its quotation and specified in the task order. You shouldn't do the modification unless the contractor really makes it worth the Government's while.

I would suggest contacting the GSA contracting officer to get their thoughts on this. They should have a good idea if 32.206(g) is standard commercial practice ("installment payments for the item are either customary or are authorized in accordance with agency procedures"). They may also have negotiated the schedule rates based on whether they thought that this type of financing is customary (and may have included the clause in the schedule terms and conditions), or may have decided that it was not customary.

If you have not previously contacted a GSA contracting officer just put the schedule number into the GSA elibrary website and it will display as the government poc phone and email. You can also check the T&C's on the same page and expiration date. If you have trouble getting them find a contract in the same schedule with a different poc and they should be able to help. If all else fails you can call their help desk and they will get you someone.

So apparently you can order armored personnel carriers off a GSA schedule as if they were commercial items?

Who knew?

H2H

P.S. -- I hope the personnel being carried don't ever learn they were awarded to the lowest bidder.

Duke, just to be clear, you said you were acquiring the vehicles from a GSA schedule holder, but you did not say you were acquiring them off a schedule. Can you clarify this point and if you are acquiring them off a schedule, what schedule?

I am confused by this - since when can the military award armored personnel carriers (APCs) from a GSA schedule?

Duke, just to be clear, you said you were acquiring the vehicles from a GSA schedule holder, but you did not say you were acquiring them off a schedule. Can you clarify this point and if you are acquiring them off a schedule, what schedule?

Yes this is off their GSA schedule. Schedule 84 426 5B

I am confused by this - since when can the military award armored personnel carriers (APCs) from a GSA schedule?

Where did you get military from?

You are correct - My mistake. I should not have assumed military at all. Sorry.