FAST PAY PROCEDURE

NAVSUP P-485, CH 4 Material Receipt, Custody & Stowage

The fast payment procedure allows payment under limited conditions to a contractor prior to the Governments verification that supplies have been received and accepted. Fast payment procedures shall be used for supplies only, not for services and lease/rentals. The procedure provides for payment for supplies based on the contractor's submission of an invoice that constitutes a representation that:

(a) The supplies have been delivered to a post office, common carrier, or point of first receipt by the Government; and
(b) The contractor agrees to replace, repair, or correct supplies not received at destination, damaged in transit, or not conforming to purchase agreements.

QUESTIONS:

1. When fast pay procedures are used, will the ship receive a dealer's invoice?
2. When material is received under fast pay procedures, what documents, if any, is the ship required to submit indicating receipt and acceptance to the paying office or to the supporting supply activity ashore?

Answer Key

FILES USED IN RECEIPT PROCESSING

NAVSUP P-485, CH 4 Material Receipt, Custody & Stowage

Material Outstanding File. Contains a copy of all ship originated procurement documents for material and services not yet received. It also includes, as attachments to individual procurement requests, all related documentation such as follow-ups, supply status and shipping status, as well as shipping documents that are specifically applicable to a single item.

Material Completed File. Contains a copy of all ship originated procurement documents which have been removed from the material outstanding file upon receipt of or cancellation of a request for material or services, plus a copy of the applicable receipt document.

Miscellaneous Receipt File. Contains shipping papers and/or invoices applicable to material consignments not initiated by a ship's procurement document

ADVICE CODES

NAVSUP P-485, APPENDIX 1

Advice codes are numeric-alphabetic or numeric-numeric and provide coded instructions to supply sources when such data is considered essential to supply action and entry in narrative form is not feasible. Here are some common advice codes:

2A - Item is not locally obtainable through manufacture, fabrication, or procurement.
2B - Requested item only will suffice. Do not substitute. (I remember this one by using the phrase "To be (2B) or not to be (2B), that is the question")
2E - Free issue
2N - Item requested in one continuous length
5A - Replacement certification. Requested item is required to replace a mandatory turn-in repairable (DLRs)
5D - Initial requirement certification. Requested item is a mandatory turn-in repairable required for initial outfitting/installation or increased allowance/stockage objective. (DLRs)
5G - Exchange certification (Exchange a bad DLR for a good DLR)
5S - Remain in place certification (Equipment that bad DLR is in can not function if it is taken out and turned in so the bad DLR is left in equipment until new one is
received.

QUESTIONS:

1. Inter-service advice codes are assigned by who?
2. Intra-service advice codes are assigned by who?

Answer Keys