2-35.3 Financial Capabilities

Analysis can be performed on the following information and items so that an estimate of present supplier capacity can be known:

• A review of financial statements and credit ratings.
• Copies of balance sheets and income statements.
• Levels of turnover.
• Liquidity measures, ratios.
• Profitability measures, ratios.
• Measures of long-term financial strength.
• Leverage ratio.

Certain business information must be obtained to determine that a potential supplier is capable. Sources of such information include:

• The Postal Service list of debarred and suspended suppliers and the GSA’s consolidated list of suppliers debarred, suspended, or declared ineligible (additional instruction can be found in 39 CFR 601.106.D).
• Records and experience data, including the knowledge of other COs, purchasing specialists, and audit personnel.
• The supplier’s proposal information, business profile, financial data, information on production equipment, production data, questionnaire replies, and personnel information.
• Subcontractors, customers, financial institutions, and government agencies that have done business with the supplier.
• Business and trade associations.