Advance Payments for Expert Contracts

Joseph Feibel – January 26, 2017

Question:

The Expert Witness we want to contract with is asking for half of the money upfront. Can we pay the Expert Witness half of the contact amount up front and the other half of the contract amount when the work is complete?

Answer:

Our agency does not allow for Advance Payment, so we would not be able to provide any payment the Expert Witness before work is performed. However, we can make payments if they are tied to actual deliverables; for instance, if at the mid-point of the work there was a deliverable due. Otherwise, the contract would have to bill by hourly rates.

While the FAR does allow for advance payments in some instances it is dependent upon your agency and the Contracting Officer. For more information of Advance Payments see Federal Acquisition Regulations (FAR) Suppart 32.2 – Commercial Item Purchase Financing.

https://www.acquisition.gov/far/html/Subpart%2032_2.html

If your agency does allow advance payments, the FAR Clause, 52.232-12 Advance Payments would be put in the contract allowing the vendor to receive up to 50% upfront and the remaining 50% upon final delivery.

Please note, advance payment is the least preferred method of contract financing and it’s a risk to the Government because submitting an advance payment the vendor gets paid whether they perform or not.