Streamline Best Value: merit-based compliancy

The F-E-G’s unique status as a 5PL under NAICS 541614, combined with its SMaRTi® process, distinguishes it from traditional 1PL, 2PL, 3PL, or 4PL models.

Traditional systems typically record R&D credits as deferred tax assets or rely on yearly reconciliation, where aggregation can trigger statutory limits (such as de minimis rules or percentage caps). F-E-G’s SMaRTi® process, however, effectively transforms each invoice’s QRE data into an immediate tax credit automating best value.

The embedded tax credit value is applied immediately against the company’s tax liability. This effectively transforms a deferred tax benefit into immediate liquidity, allowing companies to use the funds right away for further research or operational needs. This results in:

Immediate liquidity and tax liability reduction without aggregation delays.

No artificial caps, deferred credit challenges, or limitations imposed by conventional accounting cycles.

A fully auditable, transparent compliance trail that satisfies stringent IRS documentation and verification requirements.

By embedding its Strategic Management and Research Technology Infusion (SMaRTi®) process into its operation,

F-E-G leverages a patented, automated system to identify

and quantify every qualified research expense (QRE) as

soon as it is captured on an invoice-automating best value.

Key elements of the SMaRTi® process in the 5PL model include:

Automated Data Integration: Every invoice is enriched by researched and developed IRC and CFR regulations, adding metadata that tags each line item as a potential qualified research expense if it meets IRS criteria.

Patented Compliance Firewalls: These secure channels ensure the original invoice remains untouched while embedded compliance data is added.

Direct Monetization: Qualified expenses are immediately converted, on a one-to-one basis, into redeemable tax credits, allowing for an immediate reduction in tax liability.

This integration means that, when an expense qualifies under Internal Revenue Code (IRC) § 41 (or other applicable provisions), it automatically becomes eligible for a full, 100 percent dollar-for-dollar credit. No “credit carryforward” or deferred recognition is necessary—the benefit is embedded in the daily operational flow automating best value.

SMaRTi™, the pull-push process approach prioritizes measurable compliancy at every level, assurance of compliance, accountability and measurability optimization to value automated on each transaction, via optimizing invoice end-to-end process automation.

Integration into the Invoicing Process via SMaRTi®

What differentiates the Ford Enterprises Group’s approach is its seamless integration of tax incentive recognition directly into the financial workflow. Automated invoice enrichments transform tax-deferred liabilities into dollar-for-dollar redeemable tax credits and refund credits per daily operations.

This approach helps businesses achieve zero tax liability, while monetizing liquidity per accounts receivables leveraging:

Public Law 95-507- Establishes the statutory framework enabling SMaRTi™ to utilize its 5PL structure to transform operational expenses into financial assets and improve peer nodes capital structures, with

26 U.S. Code § 38 Sec. 41 (Research),

26 U.S. Code § 38 Sec. 46 (Inv) and

26 U.S. Code § 41 (R&D)

The SMaRTi® process:

Unlike traditional 1PL, 2PL, 3PL, or 4PL setups—which face periodic aggregation, deferred recognition, and IRS-imposed limits—the SMaRTi® process automates, verifies, and monetizes research expenditures in real time.

Through advanced data integration, patented compliance measures, and seamless ERP connectivity, every dollar spent on qualified research is transformed immediately into a 100 percent dollar-for-dollar tax credit.

This innovation not only eliminates limitations, caps, or restrictions but also provides a compelling competitive advantage by optimizing liquidity, enhancing compliance transparency, and enabling continuous reinvestment in research and development. In doing so, F-E-G’s approach drives sustainable economic growth and positions the organization as a leader in both logistics and technological innovation automating best value.

In summary, Ford Enterprises Group’s SMaRTi® process is a finely tuned mechanism that adheres closely to the IRC § 41 rules and Treasury Regulations governing qualified research expenses.

Compliance with Code of Federal Regulations

Scientific Research-Businesses can claim Research and Development (R&D) tax credits for qualifying research expenses, encouraging innovation and technological advancement.

Quantifiable Metrics -The process emphasizes specific, measurable goals and tracks metrics such fair market value rates, and supplier compliance. This ensures accountability and progress meeting IRS regulations-Code of Federal Regulations.

Documentation-Detailed documentation of R&D activities, including project descriptions, expenses, and outcomes, is maintained to support the tax credit claims.

The Ford Enterprises Group’s 5PL model under NAICS 541614, powered by its SMaRTi® process, represents a paradigm shift in how qualified research expenses are leveraged with the aforementioned Code of Federal Regulations , converted them into immediate tax benefits.

This system not only fosters immediate liquidity and enhanced cash flow but also supports sustained innovation by directly aligning business expenses with their rightful tax benefits—all while maintaining impeccable regulatory compliance.

These tax incentives and compliance mechanisms help businesses optimize their invoicing operations, reduce environmental impact, and achieve greater efficiency.

Infused SMaRTi™ QRE-ODIF Certification

The specific and detailed R&D incentives applied to each area of the SMaRTi™-Optimized Standard-Schema Digital Invoice Format process compliance mechanism:

2 CFR Part 25 – System for Award Management requires DUNS/UEI pre-validation within 24 hours, triggering auto-flagging of QRE line items for instant tax-credit conversion.
2 CFR Part 170 – FFATA Reporting mandates subaward payments over $25 K report within 30 days, with DUNS-tagged XML enabling same-day liquidity application.
2 CFR Part 180 – Nonprocurement Suspension and Debarment enforces 5-day payment hold on any DUNS/LEI-flagged exclusion, ensuring liquidity only flows to compliant entities.
2 CFR § 200.302 – Financial Management and Controls aligns drawdown requests to DUNS-validated invoices, disbursing QRE-backed credits within 15 days of submission.
2 CFR § 200.305 – Cost Sharing or Matching tags R&D line items in the invoice payload for real-time QRE matching and immediate on-ledger credit issuance.
2 CFR § 200.307 – Program Income requires invoicing within 60 days of earned income events to qualify amounts as QRE credits and monetize immediately.
2 CFR § 200.310 – Insurance Coverage enforces upload of DUNS-referenced policy certificates prior to invoice acceptance, unlocking immediate credit liquidity.
2 CFR § 200.334 – Remedies for Noncompliance triggers a 90-day suspension on credit flows if any DUNS/LEI audit-flag arises, preserving integrity of QRE liquidity.
12 CFR Part 9 – Liquidity Risk Measurement Standards classifies SMaRTi-issued QRE credits as eligible liquidity facilities under bank risk rules.
12 CFR Part 204 – Regulation J (Fedwire) mandates same-day finality for DUNS/LEI-tagged Fedwire transfers of tax-credit proceeds.
12 CFR Part 229 – Regulation CC (Availability of Funds) requires next-business-day availability of QRE credit disbursements in beneficiary accounts.
12 CFR Part 227 – Regulation E (Electronic Fund Transfers) ensures automatic posting of wire-transferred tax credits upon receipt, with LEI-linked transaction IDs.
12 CFR Part 307 – ACH Operations enforces T+1 settlement for SMaRTi-triggered ACH disbursements of research credits.
12 CFR Part 360 – National Banks as Depositaries requires banks to support instant drawdown of QRE credits via DUNS/LEI-validated facilities.
12 CFR Part 370 – Prepaid Accounts treats embedded tax credits as available funds, enabling immediate redemption upon invoice settlement.
31 CFR Part 203 – Fedwire Funds Service guarantees same-day settlement for QRE credit transfers, with LEI-tagged originator and beneficiary records.
31 CFR Part 205 – Fedwire Securities Service permits repo financing of SMaRTi-issued credit notes, unlocking overnight liquidity.
31 CFR Part 306 – Treasury Fiscal Requirements demands daily reconciliation of DUNS-based disbursements by 5 PM ET to maintain cash-flow visibility.
31 CFR Part 351 – Treasury General Debt Collection Procedures applies QRE credit disbursements against federal debts within 10 days of invoice clearance.
31 CFR Part 355 – Investment of Public Funds allows overnight investment of QRE credits, maturing at T+1 to bolster short-term liquidity.
31 CFR Part 356 – Government Securities Auctions authorizes SMaRTi credit notes to bid as odd-lot securities, converting QRE credits into cashable instruments.
31 CFR Part 357 – Securities Held in Custody records fractional QRE credit securities in book-entry form under issuer’s LEI, ensuring audit symmetry.
31 CFR Part 358 – Deposit of Government Revenue requires real-time routing of invoice-derived tax credits into designated Treasury accounts.
48 CFR § 32.903 – Contractor Invoicing and Records mandates retention of DUNS/LEI metadata and timestamps for 3 years, ensuring QRE credit auditability.
48 CFR § 32.906 – Contract Funding obligates immediate fund reservation upon receipt of compliant, LEI-tagged invoices.
48 CFR § 32.909 – Invoice Approval and Payment triggers automated QRE credit issuance at day 16 if no payment rejection is logged.
48 CFR § 52.204-7 – System for Award Management Representations and Certifications Inaccurate or incomplete representations of small business status, ORCA/SAM conflicts.
48 CFR § 52.232-17 – Interest on Overpayments and Delays calculates daily interest on late payments, crediting research entities instantly via SMaRTi.
48 CFR § 52.232-34 – Payment by Electronic Funds Transfer enforces EFT with LEI-encoded bank identifiers, eliminating paper check delays.
48 CFR § 52.216-18 – Ordering and Delivery embeds QRE triggers in purchase orders, converting shipped R&D components into taxable credits on delivery date.
15 CFR Part 24 – Uniform Administrative Requirements for Awards requires grant invoices paid within 30 days, accelerating QRE credit conversion in daily operations.
15 CFR Part 140 – BIS Financial Controls mandates escrow of export compliance fees via LEI-backed letters of credit, released T+1 upon shipment confirmation.
15 CFR Part 764 – OFAC Regulations (Enforced Forfeiture) freezes any tax-credit liquidity flow within 24 hours of an OFAC hit on contractor’s LEI.
17 CFR § 240.15c3-3 – Net Capital Rule permits brokerage houses to count SMaRTi-issued QRE credits as liquid assets for capital calculations.
17 CFR § 240.17Ad-22 – Clearing Agency Recordkeeping mandates storage of every invoice’s LEI metadata with nanosecond-precision timestamps.
17 CFR § 242.612 – Transaction Reporting requires LEI-tagged invoice references for block trades, ensuring instant settlement instructions.
17 CFR Part 270 – Investment Company Reporting demands same-day NAV adjustments for portfolios holding QRE-credit instruments.
21 CFR Part 11 – Electronic Records; Electronic Signatures enforces layered e-signature controls and immutable audit trails on LEI-linked digital invoices.
40 CFR Part 60 – NSPS Fee Payment requires fee invoices tagged with DUNS to be paid within 45 days, with embedded QRE credits offsetting cash due.
40 CFR Part 70 – Title V Permit Fees automates permit-fee invoicing in SMaRTi, converting QRE credits into immediate fee credits upon invoice approval.

By embedding these CFR provisions into every invoice element—line item, header, metadata—SMaRTi ensures each QRE triggers an immediate liquidity event, all under an indelible, DUNS/LEI-anchored audit trail fit for the strictest IRS, IRC, and Treasury scrutiny.

Infused SMaRTi™ QRE ODIF Compliance Certification