The Challenge And  Solution

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.

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.