Actually, there isn't much lag time between sales (delivery) and payment for goods/services from the Gov't. The key point is whether the program is funded by congress, and new funding comes with the new Gov't fiscal year, which begins 1 Oct. If funded, you then look to contract type - what is to be done/delivered. If R&D, you'll typically get progress payments and/or payments for actual costs incurred. If for delivery of tangible goods, as soon as the items survive inspection (at source or end user facility), a DD Form 250 is completed, and serves as the contractor's invoice for submittal to the payment office. The DD 250 is the golden document.

When I used to reinforce the importance of accurately completing time cards in the workplace, I would ask my folks "what's the most important document in this company?". Answer: YOUR paycheck. "What's the second most important document?" Answer: Your timecard, because a problem there will delay your paycheck. "What's the third most important document?" Answer: the DD Form 250, "Material Inspection and Receiving Report", because THAT is generally the source of funds to enable your pay. Though the DD 250 is a DoD form, it is generally used by all Gov't agencies (including NASA, and undoubtedly Homeland Security), because it is the invoice document cited in the Federal Acquisition Regulation - the basic "Bible" for all Gov't procurement.

I only scratched the surface above, in that on Cost-Plus type contracts, you also bill for costs incurred as they are incurred, aside from actual product delivery (unless R&D - where the "product" is reporting of progress). This is typically done monthly. Profit above costs incurred can be handled many ways - cost plus incentive fee, cost plus award fee, etc.

In any case, bottom line, if your Accounts Receiveable people have their act together, you can get pretty timely payments from the Gov't.

SGE