Payment Terms
Cost Reimbursable - A project that receives it’s revenue as expenditures are incurred. (Payment in arrears)
- Unspent funds are returned (a.k.a. "de-obligated") to the Sponsor
- Billing schedules are determined by the award
- Billing is most commonly done:
- Monthly
- Quarterly
- Annually
Payment Options available as a Cost Reimbursable Award:
- Letter of Credit (LOC) - Direct Draw-Down from Funding Agency. Financial Reports are used. Examples include forms 269, 270, and 272.
- NON Letter of Credit (NON-LOC) - Invoice submitted to funding agency on a scheduled basis agreed upon in the contract.
Fixed Price - A project that receives it’s funding as a set price. Here are the Payment Options available as a Fixed Price Award:
- Payments based on a Specific Schedule
- One time payment (Adv Pay)
- Paid per task
- Percent of completion