The “Cash Flow Model” is a tool to help Department of War acquisition professionals analyze the value of cash flow in negotiating Government contracts. The intention is to show the importance of cash-flow to contractors and that profit is not the only factor contractors focus on during contract negotiations. Cash flow is important because contractors need to have enough cash available to cover their expenses—such as labor, materials, and overhead—and to be able to purchase assets before delivery of the contracted item. The cash flow tool will assist the negotiator in determining if the contract scenario offered should be financially acceptable to the contractor. The model will allow users to understand the factors that most affect contract cash flow and therefore the financial return for contractors.
This webinar will help the acquisition workforce understand how to use the Cash Flow Tool in forming negotiation positions.