Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 12, 2016
Document Release Date: 
July 14, 2000
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Publication Date: 
December 18, 1975
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PDF icon CIA-RDP78-05054A000100100002-5.pdf244.41 KB
Approved For-Release 2001/11/01: CIA-RDP78-05054A000100100002-5 INSTRUCTION NO. LI 45-23 LI 45-23 LOGISTICS 18 December 1975 SUBJECT: Expedited Payment of Vendor Invoices 1. GENERAL The Deputy Director for Administration has approved certain operating principles which will permit the expedited payment of invoices sub- mitted by selected vendors. This instruction establishes conditions, responsibilities, and basic procedures to implement that approved payment system, particularly as it applies to items subject to test and inspection (T&I) prior to formal acceptance by the Agency. 2. POLICY a. The following clause will be added to the provisions of contracts, subject to this expedited-payment authority: "In consideration for the lengthy period of time required to perform acceptance testing on certain items deliverable hereunder, the sponsor agrees to provide to the contractor expedited payments wherein the sponsor will, upon receipt of a proper invoice, pay the contractor upon delivery of mate- rial(s) prior to inspection and final acceptance, with the understanding and agreement that the sponsor reserves the fight subsequent thereto to reject any item for any defect in material or workmanship or nonconformance with the spec- ifications or other requirements hereunder. The contractor agrees to correct or replace all items rejected within a reasonable time after rejection at no additional cost to the sponsor." b. Production contracting elements, when executing contracts on be- half of the Agency, will selectively exercise the expedited- payment clause of the contract provisions when the financial stature of the contractor is such that the interests and recourses of the Agency will be protected. The contracting officer will determine when the expedited-payment provision will be exercised. Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100002-5 Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100002-5 INSTRUCTION NO. LI 45-23 LI 45-23 LOGISTICS 18 December 1975 C. Materiel to be delivered under an expedited-payment contract d. Contracts utilizing the expedited-payment clause will be so identified by the contracting element so that copies distrib- uted to Central Control & Distribution Branch, Supply Division, and to the Office of Finance (0/FIN) will alert their personnel that receiving and payment documentation must be processed under extraordinary procedures. Such con- tract copies will be stamped "EXPEDITED PAYMENT" in large block letters and in a conspicuous color of reproducible ink. 3. PROCEDURES a. Immediately upon physical receipt of materiel under expedited- payment contracts, depot personnel will verify item identifica- tion and quantities and inspect containers for visible, physical damage. If the materiel passes this initial inspection and be- fore forwarding the materiel for official T&I, if required, a receiving report (R/R) will be prepared bearing the "EXPEDITED PAYMENT" stamp or facsimile and annotated "materiel subject to T&I.'" b. One copy shall be forwarded immediately to Certification and Liaison Division (C&LD), 0/FIN. That document, when used in conjunction with the expedited-payment clause of the contract, authorizes 0/FIN to make payment immediately upon receipt of the vendor's billing invoice. One additional copy should be forwarded to the contracting officer. C. The receiving of expedited=payment contracts will be processed into the Inventory Control System data base in accordance with established procedures. The only change from procedures now in effect will be the advance copies of R/R's sent to C&LD and the contracting officer. d. Discrepancies will be resolved following procedures outlined in LI 45-6, Receiving Discrepancy Policy and Procedures. Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100002-5 Approved For Release 2001/11/01: CIA-RDP78-05054A000100100002-5 INSTRUCTION NO. LI 45-23 LI 45-23 LOGISTICS 18 December 1975 e. When items have been processed through T&I, each item on the R/R will be stamped either "ACCEPTED" or'41EJECTED," followed by the quantity accepted or rejected. The R/R, marked as above, will be sent to all recipients other than 0/FIN. The Office of Lo- gistics (OL) will assume responsibility for resolving all dis- crepancies resulting from acceptance testing rejections. Neces- sary refunds, as appropriate, will be handled in accordance with established policy. OL will also be responsible for control and followup of property in process of T&I and for assuring that it is placed under formal accounting control promptly upon accept- ance following T&I. f. The contracting officer will notify 0/FIN upon final acceptance of all deliverable items on each expedited-payment contract. Such notification will be sent to C&LD as the basis for the close- out and retirement of the contract. g. 0/FIN will periodically (at least annually) provide OL with a computer listing of selected items for which payments have been made but which have not been recorded in the acquisitions account. OL will review this listing and report to 0/FIN on the status of each item. h. All OL components concerned with the subject of this instruction will develop and publish the necessary internal procedures for its implementation. J. ALAN I CK Director of Logistics THOMAS B. YA~-- Director of F nance Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100002-5 %bV"%NTtW MAAA4,0 UNCLASSIFIED CONFIDENTIAL OFFICIAL ROUTING SLIP TO NAME AND ADDRESS P.ATE INITIALS 1 ~ ~ ~gg1 2 3 4 S 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks : FOLD HERE TO RETURN TO SENDER N A M: MEE, ADDRESS AND PHONE NO. FROO DATE , A ~~ M Approved F6 fe s'~ 2001/11/ - - UNCLASSIFIED CONFIDENTIAL SECRET FORM .1110. '127 Use previous editions UNCLASSIFIED 1NTERNAL CONFIDENTIAL a,r u.Q, ASE ONLY ^ SECRET pprove or - AND RECORD SHEET C/CertMcatian and, Liaison Division 604 Key .;? x2591 TO: (Officer designation, room number, and building) 1 C/Certification and Liaison Division.. C/Planning Staff 615 Key Bldg. Deputy Director for Plans & Systems Director of Finance C/C&LD 25X1A 1 10* /4 7,5' OFFICER'S INITIALS lltil~m 1 :1 11 2 6 1 uSEO TIIO FSCrase 1 /C1 I D - D 5 COMMENTS (Number each comment to show from whom to whom. Draw a line across column after each comment.) Continents : 25X1 Mr. asks that OF coordinate on this LI and return to OL, if at all possible, by COB 11 December 1975. FWD I d USE ONLY