THE CHALLENGE AND THE SOLUTION

The Challenge And  Solution

THE CHALLENGE

Both the contractor and the government want to effect delivery of the products or services under the primary contract without delay. In the absence of a direct offset opportunity, the government must carry the offset credit, and the contractor must carry the debt, until satisfied. The government is understandably anxious to have the offset obligation satisfied as quickly as possible. Most Often the contractor does not deal in the products or services which must be supplied to satisfy the offset credit obligation. In fact, the contractor is burdened by the need to source products and services outside of its business field. Thus, the process of offset credit fulfillment is cumbersome and suffers from costly delays.

THE SOLUTION

The principal business of the Corporation is to address this offset credit resolution problem for its government clients. It does so by acquiring the offset credit obligation from the government and seeing to it that the obligation is fulfilled.By performing this function for the government, the Corporation also serves the interests of the contractor by extinguishing the credit as a contractor debt.

The process starts when the government deposits the offset credit with the Corporation pursuant to an “Offset Fulfillment Agreement.” Under this Agreement, the Corporation applies its best efforts to deliver the offsets to the government. Sourcing and delivery may include all offsets at one time or in separate deliveries.

IOC'S OFFSET PROGRAM

There are many brokers who are capable of satisfying various types of offset obligations. But there is no formal marketplace or coordination.  In addition, many fulfillment agents are acting on a retainer basis. They are being compensated whether or not they conclude a transaction. By contrast, the Corporation’s Offset Program is exclusively a best efforts, commission-driven program. It is structured so that all parties benefit. In fact, the Corporation is sufficiently confident in its ability to meet every fulfillment assignment it takes on that it allows its government client to cancel the Offset Fulfillment Agreement at any time without cause.

GENERAL BARTER AND COUNTERTRADE

The Corporation has staff who are highly experienced in a variety of general barter and countertrade techniques. This breadth of expertise enables it to apply skills to achieve creative commercial trade solutions. For example, it can find the best products and services, from reputable vendors, at competitive prices and reliable product support through its marketplace networks.

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