Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Wanabee Big Corp., a small, high-tech defense contractor, possesses technical abilities considered essential to the Department of Defense. Wanabee manufactures several key, military-unique components
The Wanabee Big Corp., a small, high-tech defense contractor, possesses technical abilities considered essential to the Department of Defense. Wanabee manufactures several key, military-unique components for the critical F-29 fighter jet. Unfortunately, the companys financial condition is weak. The chief executive officer (CEO) recently contacted the government procuring contracting officer (PCO) and requested advance payments on a just-signed $18 million contract. The PCO has determined that Wanabee meets all the statutory requirements and standards. What action should the PCO now take? |
a)Recommend that the agency authorize non-commercial advance payments since Wanabees technical ability is considered essential to the agency. |
b)Instruct Wanabee to initiate paperwork to get a loan guarantee through the Federal Reserve Bank instead of advance payments. |
C)Inform Wanabee that the risk associated with their weak financial condition automatically makes them ineligible for any type of financing. |
D)Provide commercial advance payments, but continue to closely monitor the contractors performance and financial condition to reduce the governments financial risk. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started