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    Since any contractor of software support requires payment at the beginning of the period of performance, how do you address the issue that the Federal Government can't pay for services in advance? You're paying for a year's worth of "service" at the beginning of the performance period.


    The Government can in fact pay for some services in advance of performance. "Advance payments" is the least preferred form of Government contract financing but can be authorized for commercial items. Please review FAR 32.202 for the policy. FAR 32.003 covers financing for purchases below the simplified acquisition threshold. You may also find the ACQuipedia article on "Contract Financing" as informative.

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