Can you fund delivery before the first payment?

Educational content, not legal or procurement advice, and not an endorsement by any government agency. Solicitation documents and their amendments control.

A fictional $56,000 funding gap

Assume $12,000 of mobilization costs and $22,000 of delivery costs in each of the first two months. Assume no customer receipts during that period. Cash required before the first receipt is $12,000 + $22,000 + $22,000 = $56,000, before any additional reserve.

This is an illustration, not a claim about standard government payment timing. Use the actual contract, invoice acceptance process and any subcontract terms. Billing a customer is not the same as receiving cash.

Build a weekly schedule

For each week, enter opening cash, expected receipts, payroll, supplier payments, other obligations and closing cash. Model a delayed-receipt case. Identify the lowest balance, the payment assumptions behind it and the action needed before committing. Include other business obligations rather than treating this contract as your only use of cash.

Decide before you sign

If the downside case cannot be funded, reassess scope, timing, resources and terms with appropriate advisers. Do not assume an award solves a funding shortfall.